specificity grows, firms tend to subcontract less. The opposite happens when output heterogeneity and the use of intangible assets …

opt for specificity when one trader makes a cross-investment and either (1) this cross-investment has a direct externality … on the other trader, (2) both parties invest, or (3) private information is present. The specificity (e.g. from non … effective regardless of which trader's alternative trade payoff is reduced. Specificity supports long-term contracts in a broad …