Watson, Joel; Wignall, Chris - Department of Economics, University of California-San … - 2009
This paper examines a contractual settingwith unverifiable investment and a durable trading opportunity, in which trade … that the seller’s investment affects the buyer’s benefit of trade. The analysis shows that durability of the trading … particular, whether investment and trade actions are divided or unified (Buzard and Watson 2009)— plays an important role in …