The incentive to call for contract renewal to adjust prices is considered from a bilateral perspective in a setting … encompassing several contract forms is formulated, and the existence of an equilibrium to the bilateral renewal game is established …. Prices display inertia, and the incumbent contract is found to be more resistant to changes in outside opportunities, the …

The consequences of business cycle contingencies in unemployment insurance systems are considered in a search …-matching model allowing for shifts between good and bad states of nature. We show that not only is there an insurance argument for …