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Hold-up problem

In economics, the hold-up problem is central to the theory of incomplete contracts, and shows the difficulty in writing complete contracts. A hold-up problem arises when two factors are present:

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Underinvestment

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General and cited references

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Hold-up problem

Nodes40
Edges39
Triples129
Avg. degree1.95
Density0.05
Components1

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Hold-up problem

Top relations

related to General and cited references · 97
Hold-up problem → Abstract, American Economic Review, Balkenborg, Benefits, Bulletin, Can, Che, Clarendon Press, Coase, Contract Theory, Contractual Relations, Contractual Solutions, COVID-19, Econometrica, Economic Behavior, Economic Perspectives, Economic Research, Economic Studies, Economics, Edition
related to Vertical integration · 11
Hold-up problem → Grossman, Hart, Hold-up, However, In, Schmitz, The, Therefore, Vertical, Whether, While
related to Option contracts and renegotiation · 7
Hold-up problem → However, Nöldeke, Schmidt, Such, That, The, Thus
related to Contractual · 6
Hold-up problem → He, No, Only, Risk, Rogerson, Therefore
is a · 1
Hold-up problem → situation where two parties may be able to work most efficiently by cooperating but refrain from doing so because of concerns that they may give the other party increased bargai…

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Important terminology

hold-up problem contracts investment contract parties vertical renegotiation integration also economics information economic underinvestment solution bargaining power hart transaction buyer

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
Hold-up problemis asituation where two parties may be able to work most efficiently by cooperating but refrain from doing so because of concerns that they may give the other party increased bargai…0.90text
Saddam Hussein do not surrender to superior forceinstance ofdictators0.80text
leave power when it should be rational to do soinstance ofdictators0.80text
because they have no means of assurance that their propertyinstance ofdictators0.80text
their lives will be protected if they leave powerinstance ofdictators0.80text
a merger in which all parts of the body are being produced internally rather than outsideinstance ofA solution to the hold-up problem is vertical integration0.80text
Grossmaninstance ofWhile traditional incomplete contracting models of vertical integration0.80text
Hartinstance ofWhile traditional incomplete contracting models of vertical integration0.80text
Hold-up problemrelated to ContractualRogerson0.60section
Hold-up problemrelated to ContractualHe0.60section
Hold-up problemrelated to ContractualNo0.60section
Hold-up problemrelated to ContractualTherefore0.60section

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