, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts …-forcing dual-option contract, the party without the trade action is made residual claimant with regard to the investment action … not attainable but the dual-option contract is still optimal in a wide class of settings. More generally, the paper shows …

, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts …-forcing dual-option contract, the party without the trade action is made residual claimant with regard to the investment action … not attainable but the dual-option contract is still optimal in a wide class of settings. More generally, the paper shows …

We study contracting and costly renegotiation in settings of complete, but unverifiable information, using the … mechanism-design approach. We show how renegotiation activity is best modeled in the fundamentals of the mechanism …-design framework, so that noncontractibility of renegotiation amounts to a constraint on the problem. We formalize and clarify the …

firm engage in wage negotiations. Under our presumption that contracts cannot bind employees to the organization, the …