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This paper characterizes equilibrium outcomes of extensive form games with incomplete information in which players can sign renegotiable contracts with third-parties. Our aim is to understand the extent to which third-party contracts can be used as commitment devices when it is impossible to...
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contract renegotiations. I study whether the demand for monitoring determines the renegotiation intensity, defined as either … contract renegotiation trades off the benefits of enhanced monitoring with the costs of suboptimal creditor intervention …
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