Showing 1 - 10 of 18
default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …
Persistent link: https://www.econbiz.de/10011276380
. We find that equilibrium complicit renegotiation-proof policies are supported by net cross-country wealth transfers from …
Persistent link: https://www.econbiz.de/10005662214
We characterize the optimal renegotiation-proof contract in a dynamic Principal-Agent model in which the type of the … renegotiation-proof even if types are highly correlated. The marginal benefit of having some pooling of types in the first period is …
Persistent link: https://www.econbiz.de/10005666998
SBC syndrome as a commitment problem. We show that the two features of SBC in centralized economies ex post renegotiation …
Persistent link: https://www.econbiz.de/10005667038
should experience a comparative gain within their marriage. However, if renegotiation possibilities are limited by … the German Socio-Economic Panel indeed shows that, as long as renegotiation opportunities are limited, comparatively …
Persistent link: https://www.econbiz.de/10005791755
This Paper considers the financing of a research project under uncertainty about the time of completion and the probability of eventual success. The uncertainty about future success diminishes gradually with the arrival of additional funding. The entrepreneur controls the funds and can divert...
Persistent link: https://www.econbiz.de/10005791971
likely when we allow for renegotiation, contrary to standard theories of renegotiation. What appears critical for the success … of collusion with renegotiation is that cheaters are often admonished in strong terms. Allowing renegotiation therefore …
Persistent link: https://www.econbiz.de/10008558586
circumstances where a renegotiation of the contract benefits all parties involved and non-renegotiation-proofness destroys its … credibility as a commitment device. But the contract’s strength is that renegotiation can be very visible and this facilitates a …
Persistent link: https://www.econbiz.de/10005124190
barter involves high transaction costs. The main innovation of our work is to allow renegotiation between the firm and its … renegotiation still provides ex ante incentives to use barter. We show that the greater the debt overhang, the more likely the use …
Persistent link: https://www.econbiz.de/10005136633
when renegotiation cannot be prevented. Ultimately, the question has to be answered empirically. As a first step in that … benefit the non-investing party. While according to standard theory, contracting would be useless if renegotiation cannot be …
Persistent link: https://www.econbiz.de/10005067500