Noncooperative bargaining, hostages, and optimal asset ownership

• 成果类型: Article
• 署名作者: Chiu, YS
• 署名单位: Chinese University of Hong Kong
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• 发表日期: 1998
• 页码: 882-901
• 关键词: Vertical Integration; incomplete contracts; PROPERTY-RIGHTS

摘要

This paper reexamines the effect of asset ownership on investment decisions for a joint relationship in the absence of contracts on investment levels. It obtains some results which contradict findings by Grossman, Hart, and Moore. In particular, it finds that the loss of ownership of an asset may increase the asset loser's investment incentive. The difference between this paper and those authors' papers stems from the different interpretations of the roles of the threat point and outside options in bargaining, This paper also clarifies the role of relationship-specific investments as a cause of integration.