This paper examines a general model of contract in multi-period settings with both external and self-enforcement. In … the model, players alternately engage in contract negotiation and take individual actions. A notion of contractual … relationship. In particular, the model shows the importance of accounting for the self-enforced component of contract in the …

-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … threatpoints. We compare situations in which an initial contract is renegotiated to strategically equivalent bargaining situations … in which no ex ante contract was written. The ex ante contract causes sellers to ask for markups that are 45 percent …