Abstract
We provide a deterministic example in which parties sign a contract which they anticipate will be subsequently renegotiated. The renegotiation is socially desirable. In the example, the cost of writing and enforcing contracts increases their complexity.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 117-121 |
| Number of pages | 5 |
| Journal | Economics Letters |
| Volume | 28 |
| Issue number | 2 |
| DOIs | |
| State | Published - 1988 |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics