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borrowers likely involve fewer monitoring tools and weaker control rights. We evaluate these explanations of cov-lite contract …
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borrowers likely involve fewer monitoring tools and weaker control rights. We evaluate these explanations of cov-lite contract …
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, which offer important new insights into the interaction of contract choices, fairness and incentives. …
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How does an ex ante contract affect behavior in an ex post renegotiation game? We address this question in a canonical … buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a … bargaining threat points. We compare situations in which an initial contract is renegotiated to strategically equivalent …
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rationality, that aims to explain rejections. When fairness considerations are private information, we derive an optimal contract … and characterize conditions in which this optimal contract implies rejections. Thus, our major finding is that when …
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