We study a contract design setting in which the contracting parties cannot commit not to renegotiate previous contract agreements. In particular, we characterize the outcome functions that are implementable for an uninformed principal and an informed agent if, having observed the agent's...

This paper analyzes an infinite-horizon sequential bargaining game (with one-sided offers) between a buyer and a seller when the buyer's valuation depends on the seller's; the seller knows the value of the object and the buyer does not. The influence of relative discount factors on the solution...

Bester and Strausz [Bester, H., Strausz, R., 2001. Contracting with imperfect commitment and the revelation principle: the single agent case. Econometrica 69, 1077-1098] showed that the revelation principle is invalid in a multi-agent, no-commitment setting. We show that if transfers are...