demonstrates that it may well be socially desirable not to enforce contractual terms that explicitly prevent renegotiation, even if … renegotiation can constrain the principal’s abilities to introduce distortions in order to reduce the agent’s rent, so that the …

analyze the equilibrium outcomes of twostage games with renegotiation-proof third-party contracts in relation to the … outcomes of the game without contracts. Introducing renegotiation, in general, imposes further constraints and in some games …

We propose a theory of ex post inefficient renegotiation that is based on loss aversion. When two parties write a long …

discount factors. Afterwards, we examine different concepts of renegotiation-proofness and extend the characterization to … renegotiation-proof payoffs. …

such as informal agreements and ex post renegotiation. We investigate the relevance of these features experimentally. Our … the presence of informal agreements and ex post renegotiation. However, our data also reveal new behavioral features that … renegotiation changes how trading parties evaluate ex post outcomes. Interestingly, the availability of these additional options …