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Contracts adopted with later renegotiation in mind may take simple forms. In a principal-agent model, if renegotiation … may occur after the agent chooses efforet, the principal protects against unfavorable renegotiation by "selling the … contract must be a sales contract if the principal's renegotiation position will be inherently inferior in the sense that (a …
Persistent link: https://www.econbiz.de/10012235864
The existing delegation literature has focused on different preferences of principal and agent concerning project selection, which makes delegating authority costly for the principal. This paper shows that delegation has a cost even when the preferences of principal and agent are exogenously...
Persistent link: https://www.econbiz.de/10011816561
stimulate or discourage investments. Moreover, we find that if renegotiation cannot be prevented, public–private partnerships …
Persistent link: https://www.econbiz.de/10012428716
Persistent link: https://www.econbiz.de/10012113034
The existing delegation literature has focused on different preferences of principal and agent concerning project selection, which makes delegating authority costly for the principal. This paper shows that delegation has a cost even when the preferences of principal and agent are exogenously...
Persistent link: https://www.econbiz.de/10011795221
default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …
Persistent link: https://www.econbiz.de/10011276380
(1995), into which collusion and renegotiation possibilities among agents are incorporated. In this model, we prove that … there exists a linear and stationary optimal compensation scheme which is also immune to collusion and renegotiation. …
Persistent link: https://www.econbiz.de/10009395489
Contracts adopted with later renegotiation in mind may take simple forms. In a principal-agent model, if renegotiation … may occur after the agent chooses efforet, the principal protects against unfavorable renegotiation by "selling the … contract must be a sales contract if the principal's renegotiation position will be inherently inferior in the sense that (a …
Persistent link: https://www.econbiz.de/10005766727
renegotiating their contract. The renegotiation occurs after the agent chooses his unobservable effort, but before its consequences … to renegotiation. A sales contract transfers the random return wholly to the agent, thereby relieving the principal of … this sense; renegotiation does not reduce welfare. When the agent can finely control the probabilities of observable …
Persistent link: https://www.econbiz.de/10005766769
effort. These contracts are optimal if the entrepreneur has the bargaining power in renegotiation. If the investor has the …
Persistent link: https://www.econbiz.de/10005498043