Zhao, Rui R. - In: Games and Economic Behavior 75 (2012) 2, pp. 964-983
Renegotiation and conflict resolution are studied in relational contracting under subjective evaluation. Renegotiation … performance levels is compressed and the contract is less extreme compared to the case without renegotiation. This effect is … stronger when the players are less patient. Second, renegotiation typically renders termination impossible; the contract relies …