Hainz, Christa - William Davidson Institute <Ann Arbor, Mich.> - 2006
that only sequential investments can solve the ex post
moral hazard problem. We also find that firms may prefer not to …-
ment problem resulting from ex post moral hazard. Our analysis also shows that
firms can have an incentive not to integrate …, in the first period, institutions are deficient because contracts cannot be
enforced by law. An ex post moral hazard …