Gilbert, Stephen M. (contributor) - 2009
temptation to reduce durable prices over time, thereby mitigating the classic time inconsistency problem. On the other hand, lock … demonstrates the trade-off between time inconsistency and hold-up, and derives insights about the conditions under which a lock …-in strategy can be effective. I further analyze the trade-off between time inconsistency and hold-up associated with lock-in in …