We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit … renegotiate the resulting contract without cost by proposing a new mechanism any number of times. We provide a general … characterization of renegotiation-proof states of such a renegotiation. The proposed solution concept provides an effective and easy …

Bayesian Nash equilibrium. We permit interdependent valuations, contract externalities, correlated types, and heterogeneous or …

exponential utility and cost of effort, each separating renegotiation-proof contract is characterized by a single sensitivity …How does renegotiation affect contracts between a principal and an agent subject to persistent private information and … moral hazard? This paper introduces a concept of renegotiation-proofness, which adapts to stochastic games the concepts of …

information rents. We further show that the principal may use the option of renegotiation as a tool to implement actions that are …

incomplete and shaped by ex-post renegotiation. The financing of innovative firms must balance two goals. On the one hand, since … when contracts are incomplete. I show how an appropriate choice of debt maturity, together with ex-post contract … renegotiation, embeds a "put option" into the firm's capital structure. The put is exercised when liquidation is efficient, and it …

exponential utility and cost of effort, each separating renegotiation-proof contract is characterized by a single sensitivity …How does renegotiation affect contracts between a principal and an agent subject to persistent private information and … weak renegotiation-proofness and internal consistency by exploiting natural comparisons across states. When the agent has …

incomplete and shaped by ex-post renegotiation. The financing of innovative firms must balance two goals. On the one hand, since … when contracts are incomplete. I show how an appropriate choice of debt maturity, together with ex-post contract … renegotiation, embeds a "put option" into the firm's capital structure. The put is exercised when liquidation is efficient, and it …