Electronic Contract Negotiation and Renegotiation using Features

Contract Negotiation and the Coase Conjecture∗

This paper analyzes an explicit protocol of contract negotiation between a principal who has all the bargaining power and an agent who holds some private information about his preferences. It extends the framework of the Coase conjecture to situations in which the seller and the buyer must determine the quantity or the quality of the good being sold. The results also provide a foundation for re...

Negotiation and Renegotiation of Optimal Financial Contracts Under the Threat of Predation

Delegated Bargaining and Renegotiation

This paper examines the commitment e ect of delegated bargaining when renegotiation of the delegation contract cannot be ruled out. We consider a seller who can either bargain face-to-face with a prospective buyer or hire an intermediary to bargain on her behalf. The intermediary is able to interrupt his negotiation with the buyer to renegotiate the delegation contract. In this model, the time ...

Investment and liquidation in renegotiation-proof contracts with moral hazard

In a long-term contract with moral hazard, the liquidation of the firm can arise as the outcome of the optimal contract. However, if the future production capability or market opportunities remain unchanged, liquidation may not be free from renegotiation. Will the firm ever be liquidated if we allow for renegotiation? This paper shows that the firm can still be liquidated even though liquidatio...

Mandatory Mediation and the Renegotiation of Mortgage Contracts*

Scholars have studied the use of mediation – a third party to facilitate the settlement of a dispute – in a variety of settings. The theoretical literature asserts that mediated negotiation weakly dominates unmediated negotiation, increasing the flow of information between the principal and the agent. This study tests these predictions using a mandatory mediation policy for mortgage contracts i...