Holden, Helge; Holden, Lars; Holden, Steinar - 2005
Consider a contract over trade in continuous time between two players, according to which one player makes a payment to … adjustment of the contract payment, involving adjustment costs for both players. Players? payoffs from trade under the contract …, as well as from trade under an adjusted contract, are exogenous and stochastic. We consider players? choice of whether …