The paper shows how time considerations, especially those concerning contract duration, affect incomplete contract theory. Time is not only a dimension along which the relationship unfolds, but also a continuous verifiable variable that can be included in contracts. We consider a bilateral trade...

The paper shows how the time considerations, especially those concerning contract duration, affect incomplete contract theory. Time is not only a dimension along which the relationship unfolds but also a continuous verifiable variable that can be included in contracts. We consider a bilateral...

The paper shows how the time considerations - especially concerning contract duration - affect incomplete contract theory. We consider a bilateral trade setting where contracting, investment, trade, and renegotiation take place in continuous time. Time is not only a dimension along which the...