IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v88y1998i4p882-901.html
   My bibliography  Save this article

Noncooperative Bargaining, Hostages, and Optimal Asset Ownership

Author

Listed:
  • Chiu, Y Stephen

Abstract

This paper re-examines the effect of asset ownership on investment decisions for a joint relationship in the absence of contracts on investment levels. It obtains some results which contradict findings by Sanford J. Grossman, Oliver D. Hart, and John Moore. In particular, it finds that the loss of ownership of an asset may increase the asset loser's investment incentive. The difference between this paper and those authors' papers stems from the different interpretations of the roles of the threat point and outside options in bargaining. This paper also clarifies the role of relationship-specific investments as a cause of integration. Copyright 1998 by American Economic Association.

Suggested Citation

  • Chiu, Y Stephen, 1998. "Noncooperative Bargaining, Hostages, and Optimal Asset Ownership," American Economic Review, American Economic Association, vol. 88(4), pages 882-901, September.
  • Handle: RePEc:aea:aecrev:v:88:y:1998:i:4:p:882-901
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0002-8282%28199809%2988%3A4%3C882%3ANBHAOA%3E2.0.CO%3B2-Q&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:88:y:1998:i:4:p:882-901. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.