Showing 341 - 350 of 431
Why do irreplaceable firms with a choice of suppliers or customers deliberately expose themselves to the threat of hold up by contracting ex ante to deal with only one of them? Our explanation revolves around the multiple equilibria intrinsic to situations of unverifiable investment and many...
Persistent link: https://www.econbiz.de/10005577268
married women, it should be beneficial to them. We show that, if renegotiation possibilities for migrant women are limited …
Persistent link: https://www.econbiz.de/10005583084
This paper reviews the Latin American experience with highway privatization during the last decade. Based on evidence from Argentina, Colombia and Chile, we find that private financing of new highways freed up fewer public resources than expected because public funds were often diverted to bail...
Persistent link: https://www.econbiz.de/10005587174
The literature on contracts has shown that renegotiation in agency relationships generates efficiency losses when the … principal leads the renegotiation. We show that contractual incompleteness may reduce such efficiency loss. This provides an … inefficiency when he leads the renegotiation; this latter result tempers the irrelevancy of contractual incompleteness demonstrated …
Persistent link: https://www.econbiz.de/10005598209
This article analyzes a much debated clause in the 1996 coalition contract between SPD and F.D.P. in Rheinland-Pfalz. Two parties write a contract, based on which decisions under incomplete information have to be made at a later point in time. It is shown that a complex complete contract can...
Persistent link: https://www.econbiz.de/10005620143
renegotiation, potentially undermining the credibility of cooperative strategies. To explore this issue, this paper experimentally …
Persistent link: https://www.econbiz.de/10005645215
Corruption is a widespread phenomenon around the world. Yet, models of hierarchical agency relationships tend not to predict collusion. The paper demonstrates that allowing collusion may be optimal if the principal cannot commit to an incentive scheme once and for all. The optimal extent of...
Persistent link: https://www.econbiz.de/10005649459
, pooling always occurs with respect to ex ante types while in the case of commitment with renegotiation, the introduction of an … ex ante adverse selection problem is shown to have a non trivial effect on the possibility of interim renegotiation in …
Persistent link: https://www.econbiz.de/10005696470
-post renegotiation (Maskin and Moore (1999)). If one takes a partial implementation approach, as Watson does, we show that non …-forcing contracts do not constitute an intermediate paradigm between implementation with no renegotiation and with ex-post renegotiation …
Persistent link: https://www.econbiz.de/10005697967
We construct a regulation model in which renegotiation occurs due to the imperfect enforcement of concession contracts …. This enables us to provide theoretical predictions for the impact, on the probability of renegotiation of a concession, of …
Persistent link: https://www.econbiz.de/10005701886