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, a good of too high quality or too low quality is traded ex post. Based on the buyer's expectation management, our theory …
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We propose a theory of inefficient renegotiation that is based on loss aversion. When two parties write a long … renegotiated outcome sticky and materially inefficient. The theory has important implications for the optimal design of long …
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In the hold-up problem incomplete contracts cause the proceeds of relation specific investments to be allocated by ex-post bargaining. The present paper investigates the efficiency of incomplete contracts if individuals have heterogeneous preferences implying heterogeneous bargaining behavior...
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