Anderlini, Luca; Felli, Leonardo - Suntory and Toyota International Centres for Economics … - 1996
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, a ?contractual solution? to this hold-up problem is not...