- Abstract:
- In an environment in which both buyers and sellers can undertake match specific investments, the presence of market competition for matches may solve hold-up and coordination problems generated by the absence of complete contingent contracts. In particular, this paper shows that when marching is assortative and sellers' investment precede market competition the investments are constrained efficient.
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- Volume:
- W11
- Series:
- Economics Series Working Papers
- Publication date:
- 2000-01-01
- URN:
-
uuid:4f583abf-d7b3-41e8-be42-d40ae3e270f5
- Local pid:
- oai:economics.ouls.ox.ac.uk:11906
- Language:
- English
- Copyright date:
- 2000
Working paper
Does Competition Solve the Hold-Up Problem?
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