The article provides a survey and exposition of recent developments in dynamic noncooperative game theory and dynamic contract theory. In realistic models of economic relationships, complex long-term agreements may be mutually beneficial; legal enforcement of contracts is difficult or impossible;...

This article shows that the conclusions of the Zeuthen-Harsanyi theory of bargaining, which is widely regarded as an alternative justification for Nash's solution of the bargaining problem, can be extremely sensitive to small changes in the assumption that both bargainers have identical...