this paper, and for permitting me to record these results even though they are part of a larger joint project. I also thank Rui Albuquerque, Venkataraman Bhaskar, Mark Gertler, Michihiro Kandori, Jonathan Thomas, a co-editor, and three anonymous referees for extremely useful comments and suggestions. 547 responsibilities, or repudiate his obligations. In that case the agent receives some
... [Show full abstract] continuation value, which may sometimes be interpreted as an outside option