Contractual Efficiency of PPP Infrastructure Projects: An Incomplete Contract Model

Table 3

P-CBEs of the performance guarantee model.

P-CBEs	Formation condition	I	Equilibrium of the performance guarantee model	Bidding price	Liquidation	Moral hazard
1		C1	F		○	×
2		C1	E		○	○

Note. The ○ sign in the liquidation column means that the project continues. The ○ sign in the moral hazard column means that a moral hazard does not occur, whereas the × sign means that a moral hazard occurs.