YANG, XIAOKAI - In: Division of Labor & Transaction Costs (DLTC) 01 (2006) 02, pp. 105-126
In the paper the trade-offs among endogenous transaction costs caused by two-sided moral hazard, exogenous monitoring cost, and economies of specialization are specified in a Grossman, Hart and Moore (GHM) model to absorb Maskin and Tirole's recent critique and Holmstrom and Milgrom's criticism...