Since its first appearance, Williamson's (1983) hostage model of exchange has been highly influential in guiding analysis and interpretation of "non-standard" contracting arrangements. Prior research has developed a compelling case for the existence of hostage-type arrangements in many...

We examine the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships. Building on Williamson's (1983) hostage model, we argue that the robustness of different types of hostage arrangement depends on the value, durability, and observability...

Drawing on the hostage model of Williamson (1983. "Credible Commitments: Using Hostages to Support Exchange." The American Economic Review 73: 519--540) and recent studies identifying equity affiliation as a robust hostage in the Japanese automotive industry, we examine the relationship between...

As it moved into the new millenium, Japan experienced a corporate governance crisis. Suddenly, the issue of corporate governance was transformed from an obscure concern of financial economists and legal experts into front-page news. The mass media blamed corporate misbehavior and economic...