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We study a partnership that anticipates its possible dissolution. In our model, partnerships form in order to take advantage of complementary skills; although new opportunities may arise that make partners ̕skills useless. We characterize the optimal, incentive-compatible partnership contract...
Persistent link: https://www.econbiz.de/10002521452
Persistent link: https://www.econbiz.de/10003993683
Governments may draft contracts with market agents for allocating subsidies and pursuing specific policy goals. Contract enforcement via binding commitments is difficult, however, when exogenous (environmental) and endogenous (behavioural) risks interact. Analyzing the old debt compromise in...
Persistent link: https://www.econbiz.de/10010265409
We study the alternating-offers bargaining problem of assigning an indivisible and commonly valued object to one of two players in return for some payment among players. The players are asymmetrically informed about the object's value and have veto power over any settlement. There is no...
Persistent link: https://www.econbiz.de/10010373492
We study the alternating-offer bargaining problem of sharing a common value pie under incomplete information on both sides and no depreciation between two identical players. We characterise the essentially unique perfect Bayesian equilibrium of this game which turns out to be in gradually...
Persistent link: https://www.econbiz.de/10010373493
We study a partnership that anticipates its possible dissolution. In our model, partnerships form in order to take advantage of complementary skills; although new opportunities may arise that make partners' skills useless. We characterize the optimal, incentive-compatible partnership contract...
Persistent link: https://www.econbiz.de/10002433722
Die Up-or-out-Regel besagt, dass Assistenten in Partnerschaften (oder auch Universitäten) nach einer gewissen Zeit zu Partnern aufsteigen oder die Partnerschaft verlassen müssen. Eine dauerhafte Assistententätigkeit ist nicht möglich. Dies wirft die Frage auf, warum nicht Assistent bleiben...
Persistent link: https://www.econbiz.de/10012583817
In a sequencing problem with linear time cost, Suijs (1996) proved that it is possible to achieve first best. By first best we mean that one can find mechanisms that satisfy efficiency of decision, dominant strategy incentive compatibility and budget balancedness. In this paper we show that...
Persistent link: https://www.econbiz.de/10011538720
We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit to not renegotiating any mechanism. That is, we allow the principal, after observing the outcome of a mechanism to renegotiate the resulting contract without cost by proposing...
Persistent link: https://www.econbiz.de/10011946012
In this paper, we prove that two firms may prefer not to include a termination clause in their partnership contract, thus inducing a costly termination in case of failure of the joint project. This ex-post inefficiency induces partners to exert large levels of non-contractible efforts...
Persistent link: https://www.econbiz.de/10005627234