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 project" to the agent via a sales contract. If only singleton...

Two long lived players play a repeated coordination game. Players do not specify a single (and correct) probability to each event. They have a vague notion about the evolution of the play, called blurry beliefs, which guide their behavior. General conditions that ensure cooperation are...