regarding how actively the parties initially set and renegotiate the terms of their contract. A progression of theoretical …

-forcing dual-option contract, the party without the trade action is made residual claimant with regard to the investment action … not attainable but the dual-option contract is still optimal in a wide class of settings. More generally, the paper shows …

This paper examines a general model of contract in multi-period settings with both external and self-enforcement. In … the model, players alternately engage in contract negotiation and take individual actions. A notion of contractual … relationship. In particular, the model shows the importance of accounting for the self-enforced component of contract in the …