Policy shocks affect the rent distribution in long-term contracts, which can lead to such contracts being renegotiated. We seek an understanding of what aspects of contract design, in the face of a substantial policy shock, affect the propensity to renegotiate. We test our hypotheses using data...

Edlin et al.'s reason to "vote for charity's sake" was a valiant attempt to justify, for the hard-nosed logical economist, why to vote on election day. The answer as to why we vote, however, may be simpler than trying to come up with a hypothetical charity value.