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 modeled 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 …

relational contracts are repeatedly newly negotiated during relationships. Negotiations take place with positive probability and … that existing relational contracts can depreciate and ensuing negotiations then treat previous informal agreements as …

parties may leave all non-price decisions out of the contract. By thus arguing that the threat of renegotiation facilitates …Attempts to economize on bargaining costs imply that two parties may write a contract which is incomplete in the sense … post renegotiation of decisions initially delegated to them, contracts may be even more incomplete. In the limit, the …