The paper deals with the question of the governance of common-pool resources when exogenous enforcement is not available. We assert that the recent 'linked games approach' seems to neglect that in order to be effective and to deter agents free-riding and/or hold-up, a linked game has to register...

The paper is an extension of the contributions provided by Aghion and Bolton (1987), Chung (1994, 1996), and Spier and Whinston (1995)--among others--to the analysis of the trade-off between the enforcement of incomplete contracts characterised by specific investments and the market foreclosure...

The paper stresses - in sharp contrast with the main contributions in the relevant literature on incomplete contracts - the strategic role of the degree of assets specificity for the enforcement of incomplete contracts. It is shown that under the assumption of endogenous outside options, (i)...

This paper studies a two stage incomplete contract between a buyer and a seller, with specific investments and endogenous outside options. Given that a party's outside option identifies counterpart's competitors, with such endogenous outside options, some of the main conclusions of the standard...