Implementation and Renegotiation

@article{Maskin1998ImplementationAR,
  title={Implementation and Renegotiation},
  author={Eric Maskin and John. Moore},
  journal={Public Choice \& Political Economy eJournal},
  year={1998}
}
The paper characterises the choice rules that can be implemented when agents are unable to commit themselves not to renegotiate the mechanism. 
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270 Citations
Highly Influential Citations
30
Background Citations
130
Methods Citations
29
Results Citations
7

270 Citations

Implementation with State Dependent Feasible Sets and Preferences: A Renegotiation Approach
In this paper we present a model of implementation based on the idea that agents renegotiate unfeasible allocations. We characterize the maximal set of Social Choice Correspondences that can be…
Collusion, renegotiation and implementation
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An application to optimal risk sharing is presented, showing that the possibility of collusion and renegotiation does not in general prevent the implementation of efficient allocations.
Implementation with renegotiation when preferences and feasible sets are state dependent
TLDR
The maximal set of Social Choice Correspondences that can be implemented in Nash Equilibrium in a class of reversion functions that punish agents for infeasibilities is described.
Chapter 61 Implementation theory
Implementation of individually rational social choice functions with guaranteed utilities
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I consider a setting of complete but unverifiable information in which two agents enter a contractual relationship to induce mutually beneficial investments. As my main result, I establish that the…
Contract design and non-cooperative renegotiation
Contract Remedies: General
This unique and timely book offers an up-to-date, clear and comprehensive review of the economic literature on contract law.
Mechanism Design and Non-Cooperative Renegotiation
We characterize decision rules which are implementable in mechanism design settings when, after the play of a mechanism, the uninformed party can propose a new mechanism to the informed party. The…
Nash implementation and uncertain renegotiation
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References

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Option Contracts and Renegotiation - A Solution to the Hold-Up Problem
In this article, we analyze the canonical hold-up model of Hart and Moore under the assumption that the courts can verify delivery of the good by the seller. It is shown that no further renegotiation…
Renegotiation-Proof Implementation and Time Preferences
This paper explores how the requirement that the implementation of contracts be renegotiation-proof affects the set of contracts that can be implemented in a seller-buyer scenario in which the…
Complexity and Renegotiation: A Foundation for Incomplete Contracts
The paper considers a hold-up model where only one of n future trading opportunities will prove to be efficient, and where ex post renegotiation of the ex ante contract cannot be prevented. As the…
Incomplete Contracts and Renegotiation
When drawing up a contract, it is often impracticable to specify all the relevant contingencies, and so contracts are typically incomplete. This paper considers the extent to which these gaps migh t…
The Theory of Implementation of Socially Optimal Decisions in Economics
Introduction - Economies with Public Goods - Resource Allocation Mechanisms - Dominant Strategies and Direct Mechanisms - Implementation in Nash Equilibria (I): General Results - Implementation in…
Moral Hazard and Verifiability: The Effects of Renegotiation in Agency
The authors examine the effects of renegotiation in an agency relationship. They show how renegotiation affects (1) the set of actions the principal can induce the agent to take and (2) the cost of…
Unforeseen Contingencies and Incomplete Contracts
We scrutinize the conceptual framework commonly used in the incomplete contract literature. This literature usually assumes that contractual incompleteness is due to the transaction costs of…
Incomplete Contracts, Specific Investments, and Risk Sharing
An optimal contract design problem is considered. Contracts which are incomplete and simple are used to investigate the extent to which constrained revisions can mitigate inefficiencies resulting…
Subgame Perfect Implementation
This paper examines the use of stage mechanisms in implementation problems and provides a partial characterization of the set of subgam e perfect implementable choice rules. It is shown that, in many…
Foundations of Incomplete Contracts
In the last few years, a new area has emerged in economic theory, which goes under the heading of 'incomplete contracting'. However, almost since its inception, the theory has been under attack for…
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