Specificity revisited: The role of cross-investments
Author
Abstract
Suggested Citation
Download full text from publisher
Other versions of this item:
- Matthew Ellman, 2006. "Specificity Revisited: The Role of Cross-Investments," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(1), pages 234-257, April.
- Matthew Ellman, 2004. "Specificity Revisited: The Role of Cross-Investments," Working Papers 150, Barcelona School of Economics.
References listed on IDEAS
- Hart, Oliver D & Moore, John, 1988.
"Incomplete Contracts and Renegotiation,"
Econometrica, Econometric Society, vol. 56(4), pages 755-785, July.
- Hardman Moore, John & Hart, Oliver, 1985. "Incomplete Contracts and Renegotiation," CEPR Discussion Papers 60, C.E.P.R. Discussion Papers.
- Oliver Hart & John Moore, 1985. "Incomplete Contracts and Renegotiation," Working papers 367, Massachusetts Institute of Technology (MIT), Department of Economics.
- George Baker & Robert Gibbons & Kevin J. Murphy, 2002. "Relational Contracts and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 39-84.
- Georg Noeldeke & Klaus Schmidt, 1998.
"Sequential Investments and Options to Own,"
RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 633-653, Winter.
- Nöldeke, Georg & Schmidt, Klaus M., 1997. "Sequential Investments and Options to Own," CEPR Discussion Papers 1645, C.E.P.R. Discussion Papers.
- Klaus Schmidt, 1998. "Sequential Investments and Options to Own," CESifo Working Paper Series 160, CESifo.
- Nöldeke, Georg & Schmidt, Klaus M., 1998. "Sequential investments and options to own," Munich Reprints in Economics 19327, University of Munich, Department of Economics.
- Rotemberg, Julio J & Saloner, Garth, 1994. "Benefits of Narrow Business Strategies," American Economic Review, American Economic Association, vol. 84(5), pages 1330-1349, December.
- Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 2002.
"On partial contracting,"
European Economic Review, Elsevier, vol. 46(4-5), pages 745-753, May.
- Mathias Dewatripont & Philippe Aghion & Patrick Rey, 2002. "On partial contracting," ULB Institutional Repository 2013/9627, ULB -- Universite Libre de Bruxelles.
- David de Meza & Mariano Selvaggi, 2004. "Exclusive Contracts Foster Relationship-Specific Investment," The Centre for Market and Public Organisation 04/105, The Centre for Market and Public Organisation, University of Bristol, UK.
- Yeon-Koo Che & Jozsef Sakovics, 2004.
"Contractual Remedies to the Holdup Problem: A Dynamic Perspective,"
Edinburgh School of Economics Discussion Paper Series
100, Edinburgh School of Economics, University of Edinburgh.
- Che,Y.-K. & Sakovics,J., 2004. "Contractual remedies to the holdup problem : a dynamic perspective," Working papers 3, Wisconsin Madison - Social Systems.
- Eric Maskin & John Moore, 1999.
"Implementation and Renegotiation,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 39-56.
- Maskin, Eric & Moore, John, 1998. "Implementation and renegotiation," LSE Research Online Documents on Economics 19350, London School of Economics and Political Science, LSE Library.
- Eric Maskin & John Moore, 1999. "Implementation and Renegotiation," Harvard Institute of Economic Research Working Papers 1863, Harvard - Institute of Economic Research.
- Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer.
- Bengt Holmstrom, 1982.
"Moral Hazard in Teams,"
Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
- Bengt Holmstrom, 1981. "Moral Hazard in Teams," Discussion Papers 471, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Francine Lafontaine & Joanne E. Oxley, 2004. "International Franchising Practices in Mexico: Do Franchisors Customize Their Contracts?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 95-123, March.
- repec:rus:hseeco:71610 is not listed on IDEAS
- Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
- Sugato Bhattacharyya & Francine Lafontaine, 1995. "Double-Sided Moral Hazard and the Nature of Share Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 761-781, Winter.
- David de Meza & Marianno Selvaggi, 2003. "Please Hold me Up: Why Firms Grant Exclusive Dealing Contracts," The Centre for Market and Public Organisation 03/066, The Centre for Market and Public Organisation, University of Bristol, UK.
- Julio Rotemberg & Garth Saloner, 2000. "Visionaries, Managers, and Strategic Direction," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 693-716, Winter.
- Donald B. Hausch & Yeon-Koo Che, 1999.
"Cooperative Investments and the Value of Contracting,"
American Economic Review, American Economic Association, vol. 89(1), pages 125-147, March.
- Che, Y.K. & Hausch, D.B., 1997. "Cooperative Investments and the Value of Contracting," Working papers 9714, Wisconsin Madison - Social Systems.
- Grout, Paul A, 1984. "Investment and Wages in the Absence of Binding Contracts: A Nash Bargining Approach," Econometrica, Econometric Society, vol. 52(2), pages 449-460, March.
- Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-233, April.
- Kahn, Charles & Huberman, Gur, 1988. "Two-sided Uncertainty and "Up-or-Out" Contracts," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 423-444, October.
- Alan Schwartz, 2004.
"The Law and Economics of Costly Contracting,"
The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(1), pages 2-31, April.
- Alan Schwartz & Joel Watson, "undated". "The Law and Economics of Costly Contracting," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1004, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
- Ilya Segal & Michael D. Whinston, 2000. "Exclusive Contracts and Protection of Investments," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 603-633, Winter.
- Thomas P. Lyon, 2004.
"Buyer-Option Contracts Restored: Renegotiation, Inefficient Threats, and the Hold-Up Problem,"
The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(1), pages 148-169, April.
- Thomas P. Lyon & Eric Rasmusen, 2004. "Buyer-Option Contracts Restored: Renegotiation, Inefficient Threats, and the Hold-Up Problem," Working Papers 2004-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Mukesh Eswaran & Ashok Kotwal, 1984. "The Moral Hazard of Budget-Breaking," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 578-581, Winter.
- Hart, Oliver, 1995. "Firms, Contracts, and Financial Structure," OUP Catalogue, Oxford University Press, number 9780198288817, December.
- Werner, Raub & Keren, Gideon, 1993. "Hostages as a commitment device : A game-theoretic model and an empirical test of some scenarios," Journal of Economic Behavior & Organization, Elsevier, vol. 21(1), pages 43-67, May.
- MacLeod, W Bentley & Malcomson, James M, 1993.
"Investments, Holdup, and the Form of Market Contracts,"
American Economic Review, American Economic Association, vol. 83(4), pages 811-837, September.
- Macleod, W.B. & Malcomson, J.M., 1991. "Investments, Hold Up and the Reform of Market Contracts," Cahiers de recherche 9114, Universite de Montreal, Departement de sciences economiques.
- Macleod, W.B. & Malcomson, J.M., 1991. "Investments, Hold Up And The Reform Of Market Contracts," Cahiers de recherche 9114, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Arya Anil & Frimor Hans & Mittendorf Brian, 2003. "Pouring Money Down the Drain? How Sunk Investments and Signing Bonuses can Improve Employee Incentives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-14, June.
- Alan Schwartz & Joel Watson, "undated".
"The Law and Economics of Costly Contracting,"
Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series
yale_lepp-1004, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
- Schwartz, Alan & Watson, Joel, 2001. "The Law and Economics of Costly Contracting," University of California at San Diego, Economics Working Paper Series qt2wh8m7bv, Department of Economics, UC San Diego.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
- Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
- Jolls, Christine, 1997. "Contracts as Bilateral Commitments: A New Perspective on Contract Modification," The Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 203-237, January.
- Edlin, Aaron S & Hermalin, Benjamin E, 2000. "Contract Renegotiation and Options in Agency Problems," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 395-423, October.
- Joel S. Demski & David E.M. Sappington, 1991. "Resolving Double Moral Hazard Problems with Buyout Agreements," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 232-240, Summer.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Christian Balcells, 2022. "Determinants of firm boundaries and organizational performance: an empirical investigation of the Chilean truck market," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 423-461, April.
- Christoph Lülfesmann, 2021.
"Strategic Shirking in Bilateral Trade,"
Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(4), pages 1292-1313, October.
- Christoph Luelfesmann, 2007. "Strategic Shirking in Bilateral Trade," Discussion Papers dp07-21, Department of Economics, Simon Fraser University.
- Göller, Daniel, 2015. "Contract, Renegotiation, and Holdup: When Should Messages be Sent?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113166, Verein für Socialpolitik / German Economic Association.
- Matthew Ellman, 2006. "The optimal length of contracts with application to outsourcing," Economics Working Papers 965, Department of Economics and Business, Universitat Pompeu Fabra.
- Maija Halonen‐Akatwijuka, 2010.
"Organizational Design, Technology and the Boundaries of the Firm,"
Economica, London School of Economics and Political Science, vol. 77(307), pages 544-564, July.
- Maija Halonen, 2002. "Organizational Design, Technology and the Boundaries of the Firm," Bristol Economics Discussion Papers 02/540, School of Economics, University of Bristol, UK.
- Christian A. Ruzzier, 2009. "Asset Specificity and Vertical Integration: Williamson’s Hypothesis Reconsidered," Harvard Business School Working Papers 09-119, Harvard Business School.
- David Meza & Mariano Selvaggi, 2007. "Exclusive contracts foster relationship-specific investment," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 85-97, March.
- Buzard, Kristy & ,, 2012.
"Contract, renegotiation, and hold up: Results on the technology of trade and investment,"
Theoretical Economics, Econometric Society, vol. 7(2), May.
- Buzard, Kristy & Watson, Joel, 2010. "Contract, Renegotiation, and Hold Up: Results on the Technology of Trade and Investment," University of California at San Diego, Economics Working Paper Series qt3df3q4vg, Department of Economics, UC San Diego.
- Ola Kvaløy & Ragnar Tveterås, 2008. "Cost Structure and Vertical Integration between Farming and Processing," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 296-311, June.
- Watson, Joel & Buzard, Kristy, 2009. "Contract, Renegotiation, and Hold Up: General Results on the Technology of Trade and Investment," University of California at San Diego, Economics Working Paper Series qt3923q7kz, Department of Economics, UC San Diego.
- Agamirova, Maria Е. (Агамирова, Мария) & Dzagurova, Nataliya B. (Дзагурова, Наталия), 2016. "The Legality of Vertical Restraints by the Rule of Reason and the Character of the Specific Investments [Правомерность Вертикальных Ограничивающих Соглашений С Позиции "Взвешенного Подхода&quo," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 122-137, December.
- Watson, Joel & Wignall, Chris, 2009. "Hold-Up and Durable Trading Opportunities," University of California at San Diego, Economics Working Paper Series qt8p8284wg, Department of Economics, UC San Diego.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Buzard, Kristy & ,, 2012.
"Contract, renegotiation, and hold up: Results on the technology of trade and investment,"
Theoretical Economics, Econometric Society, vol. 7(2), May.
- Buzard, Kristy & Watson, Joel, 2010. "Contract, Renegotiation, and Hold Up: Results on the Technology of Trade and Investment," University of California at San Diego, Economics Working Paper Series qt3df3q4vg, Department of Economics, UC San Diego.
- Ilya Segal & Michael D.Whinston, 2012. "Property Rights [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
- Robert Gibbons & John Roberts, 2012. "The Handbook of Organizational Economics," Economics Books, Princeton University Press, edition 1, volume 1, number 9889.
- Watson, Joel & Wignall, Chris, 2009. "Hold-Up and Durable Trading Opportunities," University of California at San Diego, Economics Working Paper Series qt8p8284wg, Department of Economics, UC San Diego.
- Watson, Joel & Buzard, Kristy, 2009. "Contract, Renegotiation, and Hold Up: General Results on the Technology of Trade and Investment," University of California at San Diego, Economics Working Paper Series qt3923q7kz, Department of Economics, UC San Diego.
- Yeon-Koo Che & Jozsef Sakovics, 2006. "The Hold-up Problem," Edinburgh School of Economics Discussion Paper Series 142, Edinburgh School of Economics, University of Edinburgh.
- Joel Watson, 2007.
"Contract, Mechanism Design, and Technological Detail,"
Econometrica, Econometric Society, vol. 75(1), pages 55-81, January.
- Joel Watson, 2002. "Contract, Mechanism Design, and Technological Detail," Theory workshop papers 505798000000000006, UCLA Department of Economics.
- Watson, Joel, 2006. "Contract, Mechanism Design, and Technological Detail," University of California at San Diego, Economics Working Paper Series qt2m08n7cg, Department of Economics, UC San Diego.
- Watson, Joel, 2002. "Contract, Mechanism Design, and Technological Detail," University of California at San Diego, Economics Working Paper Series qt18x0r2nn, Department of Economics, UC San Diego.
- Joel Watson, 2013.
"Contract and Game Theory: Basic Concepts for Settings with Finite Horizons,"
Games, MDPI, vol. 4(3), pages 1-40, August.
- Watson, Joel, 2006. "Contract and Game Theory: Basic Concepts for Settings with Finite Horizons," University of California at San Diego, Economics Working Paper Series qt0wx67671, Department of Economics, UC San Diego.
- Surajeet Chakravarty & W. Bentley MacLeod, 2004. "On the Efficiency of Standard Contracts the Case of Construction," Working Papers 874, Princeton University, Department of Economics, Industrial Relations Section..
- Surajeet Chakravarty & Bentley MacLeod, 2004. "On the Efficiency of Standard Contracts the Case of Construction," Working Papers 874, Princeton University, Department of Economics, Industrial Relations Section..
- Matthew Ellman, 2006. "The optimal length of contracts with application to outsourcing," Economics Working Papers 965, Department of Economics and Business, Universitat Pompeu Fabra.
- Alan Schwartz, 2004.
"The Law and Economics of Costly Contracting,"
The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(1), pages 2-31, April.
- Alan Schwartz & Joel Watson, "undated". "The Law and Economics of Costly Contracting," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1004, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
- Guriev Sergei, 2003.
"Incomplete Contracts with Cross-Investments,"
The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-32, August.
- Sergei Guriev, 2003. "Incomplete Contracts with Cross-Investments," Post-Print hal-03595524, HAL.
- Sergei Guriev, 2003. "Incomplete Contracts with Cross-Investments," Sciences Po publications info:hdl:2441/67o636bvfi8, Sciences Po.
- Sergei Guriev, 2003. "Incomplete Contracts with Cross-Investments," SciencePo Working papers Main hal-03595524, HAL.
- Patrick W. Schmitz, 2005.
"Should Contractual Clauses that Forbid Renegotiation Always be Enforced?,"
The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(2), pages 315-329, October.
- Schmitz, Patrick W., 2005. "Should Contractual Clauses that Forbid Renegotiation Always be Enforced?," CEPR Discussion Papers 5292, C.E.P.R. Discussion Papers.
- Schmitz, Patrick W., 2005. "Should Contractual Clauses that Forbid Renegotiation Always be Enforced?," Bonn Econ Discussion Papers 26/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
- repec:eee:labchp:v:3:y:1999:i:pb:p:2291-2372 is not listed on IDEAS
- Schwartz, Alan & Watson, Joel, 2000.
"Economic and Legal Aspects of Costly Recontracting,"
University of California at San Diego, Economics Working Paper Series
qt4jr3g3h7, Department of Economics, UC San Diego.
- Alan Schwartz & Joel Watson, 2000. "Economic and Legal Aspects of Costly Recontracting," Yale School of Management Working Papers ysm143, Yale School of Management, revised 01 Jan 2001.
- Alan Schwartz & Joel Watson, 2000. "Economic and Legal Aspects of Costly Recontracting," Yale School of Management Working Papers ysm143, Yale School of Management, revised 01 Jan 2001.
- Alan Schwartz & Joel Watson, "undated".
"The Law and Economics of Costly Contracting,"
Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series
yale_lepp-1004, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
- Schwartz, Alan & Watson, Joel, 2001. "The Law and Economics of Costly Contracting," University of California at San Diego, Economics Working Paper Series qt2wh8m7bv, Department of Economics, UC San Diego.
- Francine Lafontaine & Margaret Slade, 2007.
"Vertical Integration and Firm Boundaries: The Evidence,"
Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
- Lafontaine, Francine & Slade, Margaret, 2007. "Vertical Integration and Firm Boundaries : The Evidence," The Warwick Economics Research Paper Series (TWERPS) 799, University of Warwick, Department of Economics.
- Lafontaine, Francine & Slade, Margaret, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Economic Research Papers 269756, University of Warwick - Department of Economics.
- Andreas Roider, 2004.
"Asset Ownership and Contractibility of Interaction,"
RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 787-802, Winter.
- Roider, Andreas, 2002. "Asset Ownership and Contractability of Interaction," Bonn Econ Discussion Papers 12/2002, University of Bonn, Bonn Graduate School of Economics (BGSE).
- Hideshi Itoh & Hodaka Morita, 2015.
"Formal Contracts, Relational Contracts, and the Threat-Point Effect,"
American Economic Journal: Microeconomics, American Economic Association, vol. 7(3), pages 318-346, August.
- Hideshi Itoh & Hodaka Morita, 2011. "Formal Contracts, Relational Contracts, and the Threat-Point Effect," CESifo Working Paper Series 3533, CESifo.
- Gibbons, Robert, 2005. "Four forma(lizable) theories of the firm?," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 200-245, October.
More about this item
Keywords
Specificity; hostages long-term contracting; cross-investments; budget-balance; renegotiation;All these keywords.
JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
NEP fields
This paper has been announced in the following NEP Reports:- NEP-LAW-2005-09-29 (Law and Economics)
Statistics
Access and download statisticsCorrections
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:upf:upfgen:799. 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.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: the person in charge (email available below). General contact details of provider: http://www.econ.upf.edu/ .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.