The extensive form -- Strategies and the normal form -- Beliefs, mixed strategies, and expected payoffs -- General assumptions and methodology -- Dominance and best response -- Rationalizability and iterated dominance -- Location and partnership -- Nash equilibrium -- Oligopoly, tariffs, crime,...

This paper examines a general model of contract in multi-period settings with both external and self-enforcement. In the model, players alternately engage in contract negotiation and take individual actions. A notion of contractual equilibrium, which combines a bargaining solution and individual...