Jullien, Bruno; Pouyet, Jérôme; Sand-Zantman, Wilfried - Institut d'Économie Industrielle (IDEI), Toulouse … - 2013
We analyze early contracting when a seller has private information on the future gains from trade and the buyer can bypass. Despite ex-post trade occurring under complete information and being efficient, early negotiation with an informed seller allows the uninformed buyer to improve her...