, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts … that, with ex post renegotiation, constraining parties to use "forcing contracts" implies a strict reduction in the set of …

investment by a buyer and a seller. Contracts may specify a required quality level and an upper bound to the cost of production … damages ; Cadillac contracts ; incomplete contracts ; cooperative investments …

this remedial regime allows parties to write simple contracts that induce first-best cooperative investments. …

We present a Theory of Contracts under costly enforcement in the context of a dynamic relationship between an … constraints ensuring that trading partners do not breach contracts unduly. Whether a long-term contract is enforceable does not … depend on the distribution of penalties for breach between the buyer and the seller. While under complete information, the …

This paper provides a theoretical framework in support of recent empirical findings where the use of open contracts in …

are strategic complements. The results are interpreted in the context of legal contracts and in that of informal mutual …