Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … efficient relationship-specific investment and then been held-up by the other. Courts have had difficulty tackling this problem … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But …

Weak contract enforcement may reduce the efficiency of investment in developing countries. I study how contract … post contract renegotiation and find that the renegotiation of contracts in response to cost shocks is widespread, despite … strict contract enforcement. Contract enforcement is found to be pro-competitive. With no renegotiation, equilibrium bids …

contract. Still, agents tend to resolve conflicts up-front by writing more complete initial contracts. A more complete contract …