A Simple Economic Teaching Experiment on the Hold-Up Problem
AbstractThe hold-up problem is central to the theory of incomplete contracts. This can occur if, after making a sunk investment in a relationship, one party can be taken advantage of by the other party, leading to inefficient underinvestment. The authors describe a simple teaching experiment that illustrates the hold-up problem, and address how to integrate it into a class.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal The Journal of Economic Education.
Volume (Year): 43 (2012)
Issue (Month): 4 (October)
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Other versions of this item:
- Balkenborg, Dieter & Kaplan, Todd R & Miller, Tim, 2010. "A simple economic teaching experiment on the hold-up problem," MPRA Paper 24772, University Library of Munich, Germany.
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
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