We study the relationship between default and the maturity structure of the debt portfolio of a Sovereign, under uncertainty. The Sovereign faces a trade-off between a future costly default and a high current fiscal effort. This results into a debt crisis in case a large initial issuance of long...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. Investment costs are heterogeneous. The bargaining rule is sensitive to investment behavior. Two games are studied, which differ for the considered sociopolitical structure: communal...

Two parties bargaining over a pie, the size of which is determined by their previous investment decisions. The bargaining rule is sensitive to investment behavior. Two games are considered. In both, bargaining proceeds according to the Nash Demand Game when a symmetric investments profi le is...