We identify and investigate the basic `hold-up' problem which arises whenever each party to a contingent contract has … to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances …-up problem typically entails writing a `contract over a contract' which generates a fresh set of ex-ante costs, and hence is …

technology that transforms actions into a (probabilistic) outcome. We show that under these conditions the chosen contract may … all parties to the contract, court included. …

. Hence this contract incompleteness arises as a screening device. Moreover, the threat of costly divorce is credible since … ex-post amicable agreement, under specific circumstances. We also investigate conditions that make this contract …

effects on the optimal exit strategy and on the financial contract. Going public can be more profitable than a trade sale (i …