optimal deterministic contract for almost any degree of loss aversion. The optimal stochastic contract pays a high wage …

A loss-averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the … the long-term contract constitutes the reference point to which the parties compare gains and losses induced by the … renegotiated transaction. Whereas Herweg and Schmidt consider that the long-term contract is always performed, it should not in …

A loss averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the … the long-term contract constitutes the reference points to which the parties compare gains and losses of the renegotiated … transaction. Whereas Herweg and Schmidt assume that the long-term contract is always performed, it is actually preferably that it …

A loss-averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the … the long-term contract constitutes the reference point to which the parties compare gains and losses induced by the … renegotiated transaction. Whereas Herweg and Schmidt consider that the long-term contract is always performed, it should not in …

-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a …-term contracts. First, it explains why parties often abstain from writing a beneficial long-term contract or why some contracts … allocation of ownership rights to protect relationship-specific investments rather than writing a specific performance contract …

-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a …-term contracts. First, it explains why parties often abstain from writing a beneficial long-term contract or why some contracts … allocation of ownership rights to protect relationship-specific investments rather than writing a specific performance contract …

-term contract that has to be renegoti- ated after the realization of the state of the world, they take the initial contract as a …-term contracts. First, it explains why parties often abstain from writing a beneficial long-term contract or why some contracts … allocation of ownership rights to protect relationship-specific investments rather than writing a specific performance contract …

results also highlight the importance of behavioral biases for infrequent, binding decisions such as contract take-up. …