Double Dipping In Arbitration Awards?: An Economist Questions

Topics:
Negotiations and Contracts
Tags:
Arbitration,
Award,
Economist,
Stanford University
Source:
Stanford University

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Overview: The arbitration award to Karaha Bodas Company (KBC), in December 2000, appears to an economist to be excessive. This article addresses the method used by the tribunal to calculate the award for a foreign investment that was 'taken', the possible perverse effects of excessive awards on the behaviour of investors and host governments, and speculation as to why this and one other case went to arbitration while a number of contemporaneous disputes in similar projects in Indonesia were settled through renegotiation, rather than legal struggles.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 60KB | Date: Sep 2003 | Pages: 10


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