RT Monograph
SR 00
A1 Roig, Guillem
T1 Competition and the Hold‐U p Problem: a Setting with Non‐exclusive Contracts
YR 2014
FD 2014-03-26
VO 14-481
K1 bilateral investment
K1 hold-up
K1 competition
K1 Pareto dominance
K1 social surplus
AB This work studies how the introduction of competition to the side of the market offering trading contracts affects the equilibrium investment profile in a bilateral investment game. By using a common agency framework, where contracts are not exclusive, we find that the equilibrium investment profile depends on the competitiveness of the equilibrium outcome. Full efficiency can only be implemented when the trading outcome is the most competitive. Moreover, lowering the outcome competitiveness is not always Pareto dominant for the parties offering the contracts, and larger social welfare can be obtained with low competitive equilibria.
T2 TSE Working Paper
PB TSE Working Paper
AV Published
LK https://publications.ut-capitole.fr/id/eprint/15874/
UL http://tse-fr.eu/pub/28042