, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts …-forcing dual-option contract, the party without the trade action is made residual claimant with regard to the investment action … not attainable but the dual-option contract is still optimal in a wide class of settings. More generally, the paper shows …

good or service supplied. At each point in time, either player may unilaterally demand a renegotiation of the contract …, involving renegotiation costs for both players. Players’ payoffs from trade under the contract, as well as from a renegotiated … is to require a renegotiation when the contract payment relative to the outcome of a renegotiation passes a certain …

show that this feature is crucial for debt renegotiation models to explain corporate policies and debt prices. Specifically … debt control premiums, and predicts realistic renegotiation timing policies. Incorporating both renegotiation events also …

renegotiation and relationship-specific investment by the buyer and the seller. As demonstrated by Edlin and Reichelstein (1996), no … contract that specifies only a fixed quantity and a fixed per-unit price can induce efficient investment if marginal cost is … risk of breaching, the first best becomes attainable with a simple price-quantity contract. …

-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … and economically important impact on renegotiation behavior that goes beyond the effect of contracts on bargaining … threatpoints. We compare situations in which an initial contract is renegotiated to strategically equivalent bargaining situations …

used as commitment devices when it is impossible to commit not to renegotiate them. We characterize renegotiation …. If contracts are observable, then the second mover obtains her best possible payoff given that she plays a renegotiation … externalities and to a model of credibility of monetary policy and show that in both cases renegotiation-proofness imposes a very …

contract renegotiation is a powerful tool for incentive provision, despite the stationarity of the environment. Continuation … contracts are renegotiated away. This form of anticipated renegotiation results in welfare improvements over outcomes attainable … shown to satisfy various concepts of renegotiation‐proofness. …

, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts …-forcing dual-option contract, the party without the trade action is made residual claimant with regard to the investment action … not attainable but the dual-option contract is still optimal in a wide class of settings. More generally, the paper shows …

unobservable and incomplete contracts with and without renegotiation opportunities under the assumption that the principal cannot … outcomes to a subset of Nash equilibrium outcomes and renegotiation imposes further constraints. Yet, there is a large class of …