and limited commitment. …

This paper offers an explanation why governments have limited commitment and are susceptible to the ratchet effect. It … analyzes a two period model in which a government with full commitment regulates a firm. Each period is predated by an election … which is similar, but not identical to the standard ratchet effect which is due to intertemporal non-commitment …

.e. in the lacking of a sufficient commitment mechanism. An interchange of the roles which capital and labour play under … labour managed economy needs a special commitment mechanism. A high rate of unemployment might serve for this purpose, or …

agent to implement an action. Assuming a strong form of limited commitment, the principal may employ a mediator who gathers …. Our insights extend to general models of contracting with imperfect commitment. …

Myerson (1985) to facilitate communication in contracting settings with ex ante asymmetric information and limited commitment …

This paper examines the commitment effect of delegated bargaining when renegotiation of the delegation contract cannot … delegation contract. In this model, the time cost of renegotiation prevents a full elimination of the commitment effect of …

investor group truth-telling contract achieves the second best despite the lack of commitment; this contract is only feasible …

ride on any investors state observation. The commitment contract uses random investor auditing to prevent the firm cheating …. Without commitment auditing by investors (possibly random) and cheating by the firm (possibly random) are chosen in a Nash … that without commitment there is a negative correlation of wage and investor compensation and that there may be first best …