All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Arieh Gavious and Ramy Elitzur
 
''Venture Capital Contracting with Renegotiation''
( 2009, Vol. 29 No.1 )
 
 
This paper examines contracting between a venture capitalist and an entrepreneur in a setting with unobservable effort when contracts are renegotiated each period. The contribution of our paper lies in the insights it provides on optimal contracts in this setting. The insights from our model prove to be significantly different in certain respects than those obtained under a multi-period contract without renegotiation or a single period setting. An example is worked out to illustrate the division of payoff between the venture capitalist and the entrepreneur each period.
 
 
Keywords:
JEL: L0 - Industrial Organization: General
 
Manuscript Received : Dec 12 2008 Manuscript Accepted : Feb 09 2009

  This abstract has been downloaded 335 times                The Full PDF of this paper has been downloaded 87698 times