EconPapers    
Economics at your fingertips  
 

Renegotiation Design with Unverifiable Information

Philippe Aghion, Mathias Dewatripont () and Patrick Rey ()

Econometrica, 1994, vol. 62, issue 2, 257-82

Abstract: It has been emphasized that when contracts are incomplete (e.g., because some relevant variables are not verifiable by outsiders), the possibility of contract negotiation may prevent achieving desirable allocations that could be implemented otherwise. The authors analyze a situation where renegotiation is always possible but contracts can influence the renegotiation process; they show that some flexibility in the choice of this process allows to achieve efficiency in a variety of situations, including optimal risk-sharing and investment decisions. Copyright 1994 by The Econometric Society.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (244) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819940 ... O%3B2-G&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Renegotiation Design with Unverifiable Information (1994) Downloads
Working Paper: Renegotiation design with unverifiable information (1994)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:62:y:1994:i:2:p:257-82

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Daron Acemoglu

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().

 
Page updated 2019-07-28
Handle: RePEc:ecm:emetrp:v:62:y:1994:i:2:p:257-82