The hold-up problem has played a central role in the study of firm boundaries, which is a fundamental element of the economic study of organizations. We study a previously unexplored mechanism by which integration between two parties could mitigate the problem. Based on the social identity...

The hold-up problem has played a central role in the study of firm boundaries, which originated with the pathbreaking essay by Coase (1937). This paper studies a previously unexplored mechanism by which integration between two parties could resolve the hold-up problem. Based on Tajfel and...