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Commitment with renegotiable debt contracts and verifiable cash flow

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Author Info
Usman, Murat

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Abstract

We study a Buyer-Seller relationship with one-sided relationship-specific investment. Debt commits the Seller not to trade at a low price even though it is renegotiable, and the cash flow is verifiable.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4P40KGD-2/1/036d856ee98c0e8de6ee332fb9bc468a
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 2 (May)
Pages: 249-251
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:249-251

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Web page: http://www.elsevier.com/locate/ecolet

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