, and renegotiation. Trade actions are modeled as individual and trade-action-based option contracts ("non-forcing contracts … that, with ex post renegotiation, constraining parties to use "forcing contracts" implies a strict reduction in the set of …

renegotiation. If the buyer expects renegotiation always to take place, the parties are always able to implement the materially … efficient good ex post. It can be optimal for the buyer, however, to expect that renegotiation does not take place. In this case …

-invest in early construction, seeking a renegotiation thereafter. We show that, in a renegotiation-proof contract, the marginal … contractual payoff of the firm is above its renegotiation payoff in the former case, below in the latter. We further show that … when the firm holds private information on the operating conditions, the government may welcome a contractual renegotiation …

characterization of renegotiation-proof states of such a renegotiation. The proposed solution concept provides an effective and easy …