Economics, Econometrics and Finance
8 years ago

Timing is Everything: How Sending Messages Impacts Trade Efficiency

SSRN Electronic Journal
Contract, Renegotiation, and Holdup: When Should Messages Be Sent?
Daniel Göller

Paper Summary

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The article discusses how different timing of communication affects trade outcomes. It shows that when renegotiation happens before a trade agreement, the best results are often achieved. This means that the order of events can impact efficiency in trade deals.