Hold-Up Problem: Underinvestment in Parts Transactions

The aim of this case material is (not to study the accounting or personnel aspects but) to clarify some points in the hold-up problem which arises as a major issue in incomplete contracts. We consider a simplified situation based on the merger of Fisher body (body supplier) by GM (automaker). It is difficult to codify every possible contingency in contracts, and thus ambiguous arrangements will remain in the statements about the terms and conditions of transactions. This incompleteness of contracts may cause manufacturer's or supplier's underinvestment in relation-specific equipments or skills in parts transactions. How can we resolve this problem? If it is difficult to resolve it, what should we keep in mind for our management decision? Readers can understand the contents of this case material more easily, if they have knowledge of the differentiation of quadratic functions. The Appendix classifies transaction costs from two different aspects.

一部閲覧する(ログインして職業を登録すると全文が閲覧できます)全文閲覧はこちら

【書誌情報】

ページ数：12ページ

サイズ：A4

言語：日本語

商品番号：KBSP-02881

書誌コード：3216

登録日：2020/4/1