Smirnov, Vladimir; Wait, Andrew - In: Contributions to Theoretical Economics 7 (2007) 1, pp. 1234-1234
This paper explores the hold-up problem between two parties (an entrepreneur and an investor) when one of the parties (the entrepreneur) is unable to commit not to repudiate the initial contract. To mitigate hold-up we allow the parties to stage investments over time and derive the optimal...
