, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts … that, with ex post renegotiation, constraining parties to use "forcing contracts" implies a strict reduction in the set of …

unverifiable, information. The main point of the paper is that the consideration of renegotiation necessitates formal examination …-contingent payoffs under various assumptions about renegotiation opportunities, and (b) a result establishing conditions under which … refutes the validity of the "mechanism design with ex post renegotiation" program, it demonstrates the validity of other …

actions. The sets of implementable state-contingent payoffs, under various assumptions about renegotiation opportunities, are …

, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts … that, with ex post renegotiation, constraining parties to use "forcing contracts" implies a strict reduction in the set of …

We study contracting and costly renegotiation in settings of complete but unverifiable information, using the mechanism …-design approach. We show how renegotiation activity is best modelled in the fundamentals of the mechanism-design framework, so that … noncontractibility of renegotiation amounts to a constraint on the problem. We formalize and clarify the Renegotiation …

is assumed that renegotiation is costly. In this world, recontracting retains much of the benefit that has been ascribed … attractiveness of renegotiation decreases in recontracting costs. We show that the optimal contracting environment often involves … moderate recontracting costs, which balance the beneficial and detrimental effects of renegotiation. Our result stands in …

consists of a sequence of verifiable productive actions, between which renegotiation can occur. The main result identifies an … the detrimental effects of renegotiation between productive actions can be counteracted when the parties can sufficiently …

, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts … that, with ex post renegotiation, constraining parties to use "forcing contracts" implies a strict reduction in the set of …