For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation. If …). Bilateral negotiations are superior if potential design improvements are important, if renegotiation is particularly costly, and …

inefficiencies: inefficient renegotiation, inefficient production and inefficient design. We derive the welfare optimal direct …

are more pronounced for a fancy than a standard design, it is optimal to fix the standard design ex ante. If renegotiation …

Contracts adopted with later renegotiation in mind may take simple forms. In a principal-agent model, if renegotiation … may occur after the agent chooses efforet, the principal protects against unfavorable renegotiation by "selling the … contract must be a sales contract if the principal's renegotiation position will be inherently inferior in the sense that (a …

How does renegotiation affect contracts between a principal and an agent subject to persistent private information and … weak renegotiation-proofness and internal consistency by exploiting natural comparisons across states. When the agent has … exponential utility and cost of effort, each separating renegotiation-proof contract is characterized by a single sensitivity …