Giovannoni, Francesco; Hinnosaar, Toomas - 2022
-maximizing seller is a fixed price contract with an "at-will'' clause: the seller can choose to cancel the contract upon discovering her … production cost. However, sometimes the seller can do better by offering a guaranteed-delivery price at the ex-ante stage and a … second price at the ex-post stage if the buyer rejects the first offer. Such a "limited commitment'' mechanism can raise …