How does the prospect of sale affect the seller's incentive to investigate — to acquire socially valuable information … owners of assets have better information about their assets, even before they investigate. In such asymmetric information …-disclosure rule, which requires disclosure of material information, but only after the contract is concluded. We show that this rule …

contracts are prematurely terminated. In the absence of contracting frictions that prevent contractors from redesigning … contracts to accommodate exogenous policy changes, PPLD would not be distortionary or redistributive. If contracting frictions …