illustrated by means of two games: a public goods game in which each player simultaneously offers a menu contract to a common …

effect of renegotiation costs on initial contract terms. TD9599 materially reduced the tax burden of renegotiating U … setting, we examine the implications of incomplete contracting theory for debt contract design. Consistent with incomplete … contracting theory, we find that, as renegotiation costs fall, the maturity of debt contracts lengthens, the likelihood of …

contingent claims in a complete asset market. The manager is given a contract so that at equilibrium she chooses the plan … preferred by shareholders. We show that the contract should restrict the manager from trading. Moreover, the marginal utility of …

constraints ensuring that trading partners do not breach contracts unduly. Whether a long-term contract is enforceable does not … optimal contract would remain stationary, non-stationarity might arise under asymmetric information. Enforcement constraints … at high prices at the beginning of the relationship before breaching the contract later on. Yet, such take …

. We consider full-commitment contracts, i.e., the principal is assured that his contract for each agent is implemented …, and analyze the principal's delegation choice to authorize a senior agent to contract with a junior agent based on reports … decentralized contract are driven by their incentives to share risk, and by their incentives to re-allocate their effort choices, i …

The term “liberty of contract” is usually associated with the doctrine that the due process clause of the United States … free-market advocates embrace the liberty of contract doctrine because they are averse to State interference with private … market transactions. But the term is ironic because a contract is only legally binding if courts will enforce it. Since …

this environment, I study a direct mechanism and characterize an optimal contract. Additionally, I compare the allocation …

) increased agency costs in most categories of the firms, and (iii) reduced the off-equilibrium loss from the CEO shirking …

CEOs shirking and CEOs' benefits from shirking, and (iii) slightly reduced the administrative costs and mainly increased … the agency costs embedded in CEO compensation. Cross-sectionally, it finds favorable impacts of SOX most often in the …