3 Citations (Scopus)

Abstract

The paper uses the theory of repeated games to model relational contracts. It demonstrates that there are cases where it is better to leave a long term contract more incomplete than it needs to be in order to secure optimal renegotiation at every point. In this particular class of contract problems, it may be optimal to allow contract modification even in cases where the buyer could have put the modified terms into the original contract.
Original languageEnglish
Pages (from-to)179-194
Number of pages6
JournalEuropean Journal of Law and Economics
Volume5
Issue number2
DOIs
Publication statusPublished - 1998

Keywords

  • Contract modification
  • Incomplete contracts
  • Relational contracts
  • Repeated games

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