In this paper, we develop a model that captures the potential conflict between two individuals who follow different fairness principles in bargaining. This model is used to analyse the influence of fairness motivation on the possibility of reaching an agreement in bargaining, and to examine the...

We exploit plausibly exogenous variation in the tax consequences of renegotiating U.S. syndicated loans to isolate the effect of renegotiation costs on initial contract terms. TD9599 materially reduced the tax burden of renegotiating U.S. syndicated loans, while leaving the taxation of...