Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem
In an environment in which a buyer and a seller make ex-ante investments, competition among sellers can solve the hold-up problem without the design of ex-ante contracts but, in the case of low levels of competition, this may lead to inefficient investments. This paper shows that a seller invests ef...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2020
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- eng
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/23456
- Acceso en línea:
- https://doi.org/10.1515/bejte-2018-0190
https://repository.urosario.edu.co/handle/10336/23456
- Palabra clave:
- Bilateral investment
Hold-up
Latent contracts
- Rights
- License
- Abierto (Texto Completo)
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5979136002020-05-26T00:02:11Z2020-05-26T00:02:11Z2020In an environment in which a buyer and a seller make ex-ante investments, competition among sellers can solve the hold-up problem without the design of ex-ante contracts but, in the case of low levels of competition, this may lead to inefficient investments. This paper shows that a seller invests efficiently when each seller offers latent contracts designed to exclude any other seller from trade (i. e. most intense competition). Because competition among sellers allows the buyer to appropriate part of the gains from his investment, the hold-up problem vanishes for most of the buyer's investment costs. However, the seller appropriates more than his marginal contribution to the gains from trade, and over-invests, when a group of sellers does not offer latent contracts (under less intense competition). Therefore, efficient investments can only be implemented when competition is at its most intense. © 2020 Walter de Gruyter GmbH, Berlin/Boston 2020.application/pdfhttps://doi.org/10.1515/bejte-2018-019019351704https://repository.urosario.edu.co/handle/10336/23456engDe GruyterB.E. Journal of Theoretical EconomicsB.E. Journal of Theoretical Economics, ISSN:19351704,(2020)https://www.scopus.com/inward/record.uri?eid=2-s2.0-85082180380&doi=10.1515%2fbejte-2018-0190&partnerID=40&md5=44df4f33f4213cb38deaeb16b94b797aAbierto (Texto Completo)http://purl.org/coar/access_right/c_abf2instname:Universidad del Rosarioreponame:Repositorio Institucional EdocURBilateral investmentHold-upLatent contractsCompetition with Nonexclusive Contracts: Tackling the Hold-Up ProblemarticleArtículohttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501Roig Roig, Guillem10336/23456oai:repository.urosario.edu.co:10336/234562022-05-02 07:37:17.236957https://repository.urosario.edu.coRepositorio institucional EdocURedocur@urosario.edu.co |
dc.title.spa.fl_str_mv |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
title |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
spellingShingle |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem Bilateral investment Hold-up Latent contracts |
title_short |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
title_full |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
title_fullStr |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
title_full_unstemmed |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
title_sort |
Competition with Nonexclusive Contracts: Tackling the Hold-Up Problem |
dc.subject.keyword.spa.fl_str_mv |
Bilateral investment Hold-up Latent contracts |
topic |
Bilateral investment Hold-up Latent contracts |
description |
In an environment in which a buyer and a seller make ex-ante investments, competition among sellers can solve the hold-up problem without the design of ex-ante contracts but, in the case of low levels of competition, this may lead to inefficient investments. This paper shows that a seller invests efficiently when each seller offers latent contracts designed to exclude any other seller from trade (i. e. most intense competition). Because competition among sellers allows the buyer to appropriate part of the gains from his investment, the hold-up problem vanishes for most of the buyer's investment costs. However, the seller appropriates more than his marginal contribution to the gains from trade, and over-invests, when a group of sellers does not offer latent contracts (under less intense competition). Therefore, efficient investments can only be implemented when competition is at its most intense. © 2020 Walter de Gruyter GmbH, Berlin/Boston 2020. |
publishDate |
2020 |
dc.date.accessioned.none.fl_str_mv |
2020-05-26T00:02:11Z |
dc.date.available.none.fl_str_mv |
2020-05-26T00:02:11Z |
dc.date.created.spa.fl_str_mv |
2020 |
dc.type.eng.fl_str_mv |
article |
dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_970fb48d4fbd8a85 |
dc.type.coar.fl_str_mv |
http://purl.org/coar/resource_type/c_6501 |
dc.type.spa.spa.fl_str_mv |
Artículo |
dc.identifier.doi.none.fl_str_mv |
https://doi.org/10.1515/bejte-2018-0190 |
dc.identifier.issn.none.fl_str_mv |
19351704 |
dc.identifier.uri.none.fl_str_mv |
https://repository.urosario.edu.co/handle/10336/23456 |
url |
https://doi.org/10.1515/bejte-2018-0190 https://repository.urosario.edu.co/handle/10336/23456 |
identifier_str_mv |
19351704 |
dc.language.iso.spa.fl_str_mv |
eng |
language |
eng |
dc.relation.citationTitle.none.fl_str_mv |
B.E. Journal of Theoretical Economics |
dc.relation.ispartof.spa.fl_str_mv |
B.E. Journal of Theoretical Economics, ISSN:19351704,(2020) |
dc.relation.uri.spa.fl_str_mv |
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85082180380&doi=10.1515%2fbejte-2018-0190&partnerID=40&md5=44df4f33f4213cb38deaeb16b94b797a |
dc.rights.coar.fl_str_mv |
http://purl.org/coar/access_right/c_abf2 |
dc.rights.acceso.spa.fl_str_mv |
Abierto (Texto Completo) |
rights_invalid_str_mv |
Abierto (Texto Completo) http://purl.org/coar/access_right/c_abf2 |
dc.format.mimetype.none.fl_str_mv |
application/pdf |
dc.publisher.spa.fl_str_mv |
De Gruyter |
institution |
Universidad del Rosario |
dc.source.instname.spa.fl_str_mv |
instname:Universidad del Rosario |
dc.source.reponame.spa.fl_str_mv |
reponame:Repositorio Institucional EdocUR |
repository.name.fl_str_mv |
Repositorio institucional EdocUR |
repository.mail.fl_str_mv |
edocur@urosario.edu.co |
_version_ |
1814167559779385344 |