Similar Search Results

Anderlini, Luca; Felli, Leonardo - CESifo - 1999

We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...

Persistent link: https://www.econbiz.de/10005766309

Loss Aversion and Ex Post Inefficient Renegotiation

Herweg, Fabian; Schmidt, Klaus - CESifo - 2012

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

Persistent link: https://www.econbiz.de/10010598911

Incomplete Contracting, Renegotiation, and Expectation-Based Loss Aversion

Herweg, Fabian; Karle, Heiko; Müller, Daniel - CESifo - 2014

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 …

Persistent link: https://www.econbiz.de/10010752163

Formal Contracts, Relational Contracts, and the Holdup Problem

Itoh, Hideshi; Morita, Hodaka - CESifo - 2006

renegotiation price in general, and the alternative-use value in particular. …

Persistent link: https://www.econbiz.de/10005196210

Auctions vs. Negotiations: The Effects of Inefficient Renegotiation

Herweg, Fabian; Schmidt, Klaus - CESifo - 2015

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 …

Persistent link: https://www.econbiz.de/10011210403