IDEAS home Printed from https://ideas.repec.org/a/bla/randje/v50y2019i4p768-786.html
   My bibliography  Save this article

Information control in the hold‐up problem

Author

Listed:
  • Anh Nguyen
  • Teck Yong Tan

Abstract

We study the use of information control to mitigate hold‐up risks. We identify a distinction between asymmetric information that creates an ex ante investment incentive and asymmetric information that causes ex post inefficiency, which then allows ex post inefficiency to be eliminated without compromising the ex ante investment incentive. We characterize the properties of the optimal information structure and the payoffs and welfare achievable with information control in the presence of hold‐up risks.

Suggested Citation

  • Anh Nguyen & Teck Yong Tan, 2019. "Information control in the hold‐up problem," RAND Journal of Economics, RAND Corporation, vol. 50(4), pages 768-786, December.
    • Handle: RePEc:bla:randje:v:50:y:2019:i:4:p:768-786
    DOI: 10.1111/1756-2171.12295
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1756-2171.12295
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1756-2171.12295?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Shufen & Zheng, Yuqing & Li, Taiping & Zhou, Li, 2021. "The Hold-up Problem in China’s Broiler Industry: Empirical Evidence from Jiangsu Province," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329410, Asian Society of Agricultural Economists (ASAE).
    2. Tan, Teck Yong, 2023. "Optimal transparency of monitoring capability," Journal of Economic Theory, Elsevier, vol. 209(C).
    3. Daehong Min, 2021. "Bayesian persuasion under partial commitment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 743-764, October.
    4. Pedro Manuel Nogueira Reis & António Pedro Soares Pinto, 2022. "How Do Banking Characteristics Influence Companies’ Debt Features and Performance during COVID-19? A Study of Portuguese Firms," IJFS, MDPI, vol. 10(4), pages 1-29, October.
    5. Vasudha Jain & Mark Whitmeyer, 2021. "Search and Competition with Flexible Investigations," Papers 2104.13159, arXiv.org.

    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:bla:randje:v:50:y:2019:i:4:p:768-786. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/randdus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.