Relative Performance in Bilateral Trade

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Relative Performance in Bilateral Trade

Concerns for relative performance are integrated into a model of contractual renegotiation in bilateral trade. It is shown that concerns for relative performance do never impede efficient trade. Moreover, conditional on renegotiation to occur, concerns for relative performance tend to mitigate material rent expropriation. However, concerns for relative performance make the occurrence of renegot...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2007

ISSN: 1556-5068

DOI: 10.2139/ssrn.998485