On Renegotiation-Proof Contracts in Repeated Agency
In this paper I study ``renegotiation-proof" contracts in infinite-horizon principal-agent environment. A concept of renegotiation-proofness is adopted, which not only has the appeal of intuitively generalizing its counterpart in finite-horizon environment but proves to be a powerful device for characterizing the allocations that satisfy the notion. It is shown that renegotiation-proof contracts exist under broad conditions and admit simple characterizations.
|Date of creation:||2001|
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