Gagnepain, Philippe; Ivaldi, Marc; Martimort, David - In: American Economic Review 103 (2013) 6, pp. 2352-83
Contract theory claims that renegotiation prevents attainment of the efficient solution that could be obtained under full commitment. Assessing the cost of renegotiation remains an open issue from an empirical viewpoint. We fit a structural principal-agent model with renegotiation on a set of...