unobservable and incomplete contracts with and without renegotiation opportunities under the assumption that the principal cannot … outcomes to a subset of Nash equilibrium outcomes and renegotiation imposes further constraints. Yet, there is a large class of …

used as commitment devices when it is impossible to commit not to renegotiate them. We characterize renegotiation …. If contracts are observable, then the second mover obtains her best possible payoff given that she plays a renegotiation … externalities and to a model of credibility of monetary policy and show that in both cases renegotiation-proofness imposes a very …