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Contracts renegotiation in a Continuous State Space

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Author Info
Nosal, E.
Abstract

In this paper I demonstrate the existence an initial incomplete contract that can subsequently be renegociated to the set of first best allocations in a fairly geneal principal-agent model when the state space is continuous.

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Publisher Info
Paper provided by University of Waterloo, Department of Economics in its series Working Papers with number 9614.

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Length: 25 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:wat:wpaper:9614

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Related research
Keywords: CONTRACTS; ECONOMIC MODELS; GAME THEORY;

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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