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- W2013837891 abstract "The paper shows how the time considerations - especially concerning contract duration - affect incomplete contract theory. We consider a bilateral trade setting where contracting, investment, trade, and renegotiation take place in continuous time. Time is not only a dimension along which the relationship unfolds but also a continuous verifiable variable that can be included in contracts. We show that incentives for efficient investment can be provided either through a chain of constantly renegotiated fixed-term contracts; or through a renegotiation-proof 'evergreen' contract - a contract of indefinite duration that includes an option of unilateral termination with advance notice. We provide a detailed analysis of properties of optimal contracts." @default.
- W2013837891 created "2016-06-24" @default.
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- W2013837891 date "2003-01-01" @default.
- W2013837891 modified "2023-09-23" @default.
- W2013837891 title "Contracting On Time" @default.
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- W2013837891 doi "https://doi.org/10.2139/ssrn.469180" @default.
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