Tung, Chris Y.; Yang, C. C. - In: Pacific Economic Review 19 (2014) 4, pp. 466-482
This paper addresses whether the efficient equilibria characterized by Grossman and Helpman's one-shot protection-for-sale game are renegotiation-proof in an infinitely repeated setting. We propose a simple strategy profile that can support the efficient, truthful equilibrium in each period as a...