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Müller, Andreas; Storesletten, Kjetil; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 2015

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

Equilibrium Exchange Rate Policies: Complicit Renegotiation-Proof Outcomes

Mella-Barral, Pierre; Vitale, Paolo - C.E.P.R. Discussion Papers - 2001

. We find that equilibrium complicit renegotiation-proof policies are supported by net cross-country wealth transfers from …

Persistent link: https://www.econbiz.de/10005662214

Optimality and Renegotiation in Dynamic Contracting

Battaglini, Marco - C.E.P.R. Discussion Papers - 2005

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

Soft Budget Constraint Theories: From Centralization to the Market

Maskin, Eric; Xu, Cheng-Gang - C.E.P.R. Discussion Papers - 2001

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

Women's Earning Power and the 'Double Burden' of Market and Household Work

Chen, Natalie; Conconi, Paola; Perroni, Carlo - C.E.P.R. Discussion Papers - 2007

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

The Financing of Innovation: Learning and Stopping

Bergemann, Dirk; Hege, Ulrich - C.E.P.R. Discussion Papers - 2001

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

Communication, Renegotiation, and the Scope for Collusion

Cooper, David J.; Kühn, Kai-Uwe - C.E.P.R. Discussion Papers - 2009

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

Independent but Accountable: Walsh Contracts and the Credibility Problem

Al-Nowaihi, A; Levine, Paul L - C.E.P.R. Discussion Papers - 1996

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

Debt Overhang and Barter in Russia

Guriev, Sergei; Makarov, Igor; Maurel, Mathilde - C.E.P.R. Discussion Papers - 2001

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

Can Contracts Solve the Hold-Up Problem? Experimental Evidence

Hoppe, Eva I; Schmitz, Patrick W - C.E.P.R. Discussion Papers - 2009

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