A Simple Economic Teaching Experiment on the Hold-Up Problem

The hold-up problem is central to the theory of incomplete contracts. This can occur if, after making a sunk investment in a relationship, one party can be taken advantage of by the other party, leading to inefficient underinvestment. The authors describe a simple teaching experiment that illustrates the hold-up problem, and address how to integrate it into a class.

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Year of publication:	2012
Authors:	Balkenborg, Dieter ; Kaplan, Todd ; Miller, Timothy
Published in:	The Journal of Economic Education. - Taylor & Francis Journals, ISSN 0022-0485. - Vol. 43.2012, 4, p. 377-385
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010622800