renegotiation. If the buyer expects renegotiation always to take place, the parties are always able to implement the materially … efficient good ex post. It can be optimal for the buyer, however, to expect that renegotiation does not take place. In this case …

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … auctions if sellers are likely to have superior information about possible design improvements, if renegotiation is costly, and …

We propose a theory of ex post inefficient renegotiation that is based on loss aversion. When two parties write a long …

-invest in early construction, seeking a renegotiation thereafter. We show that, in a renegotiation-proof contract, the marginal … contractual payoff of the firm is above its renegotiation payoff in the former case, below in the latter. We further show that … when the firm holds private information on the operating conditions, the government may welcome a contractual renegotiation …