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The shadow of the future in business relationships

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  • Johanson, Jan
  • Smith, Dag

Abstract

Empirical studies have demonstrated the existence and importance of business relationships. In particular, it has been suggested that investments in such relationships are significant assets of the parties engaged in the relationship. This article analyses in some detail the valuation of such assets in terms of the behavioural pattern of the parties and some other characteristics of the assets. The analysis is based on an interpretation of the relationships as Prisoner's Dilemma games.

Suggested Citation

  • Johanson, Jan & Smith, Dag, 1992. "The shadow of the future in business relationships," Working Papers 1992:3, Uppsala University, Department of Business Studies.
    • Handle: RePEc:hhb:uufewp:9203
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