The Law and Economics of Costly Contracting

@article{Schwartz2001TheLA,
  title={The Law and Economics of Costly Contracting},
  author={Alan G. Schwartz and Joel Watson},
  journal={Yale Law School},
  year={2001}
}
In most of the contract theory literature, contracting costs are assumed either to be high enough to preclude certain forms of contracting or low enough to permit any contract to be written. Similarly researchers usually treat renegotiation as either costless or prohibitively costly. This article addresses the middle ground between these extremes, in which the costs of contracting and renegotiation can take intermediate values and the contracting parties can themselves influence these costs… 
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