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Rheinische Friedrich-Wilhelms-Universität Bonn >
Bonn Graduate School of Economics (BGSE), Universität Bonn >
Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/22932
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Schmitz, Patrick W. | | en_US |
| dc.date.accessioned | | 2009-01-29T15:11:08Z | | - |
| dc.date.available | | 2009-01-29T15:11:08Z | | - |
| dc.date.issued | | 2005 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/22932 | | - |
| dc.description.abstract | | Recent work in the field of mechanism design has led some researchers to propose institutional changes that would permit parties to enter into nonmodifiable contracts, which is not possible under current contract law. This paper demonstrates that it may well be socially desirable not to enforce contractual terms that explicitly prevent renegotiation, even if rational and symmetrically informed parties have deliberately signed such a contract. The impossibility to prevent renegotiation can constrain the principal?s abilities to introduce distortions in order to reduce the agent?s rent, so that the first-best benchmark solution will more often be attained. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | | | en_US |
| dc.relation.ispartofseries | | Bonn econ discussion papers 2005,26 | | en_US |
| dc.subject.jel | | K12 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Contract modification | | en_US |
| dc.subject.keyword | | Renegotiation | | en_US |
| dc.subject.keyword | | Moral hazard | | en_US |
| dc.subject.stw | | Vertragstheorie | | en_US |
| dc.subject.stw | | Vertragsrecht | | en_US |
| dc.subject.stw | | Moral Hazard | | en_US |
| dc.subject.stw | | Theorie | | en_US |
| dc.title | | Should Contractual Clauses that Forbid Renegotiation Always be Enforced? | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 500985758 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | - |
| Appears in Collections: | | Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn
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