This paper explores the incentive effects of a renewal clause in a lease. The basis of selection is rank-order performance. The authors' findings, in the context of a principal-agent model, are as follows. In order to extract greater effort from tenants (i.e., agents), the landlord (the...

We consider a differential game between two players, where one player has the first-mover advantage. We compare the equilibrium of this model with the one generated by a conventional symmetric model. The existence of a first mover results in more conservationist exploitation in the aggregate. We...