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- W3122637238 abstract "Several recent articles have shown that the efficient outcome for bilateral trade, even in the face of specific investments and incomplete contracting, can be supported with appropriately-designed contracts. These studies have, for the most part, restricted attention to so called selfish investments that benefit the investor (e.g., the seller's investment reduces her cost of producing the good). We find very different results for cooperative investments that directly benefit the investor's partner (e.g., the seller's investment improves the buyer's value of the good). If the parties can commit not to renegotiate, schemes exist that can achieve the efficient outcome as a subgame perfect equilibrium." @default.
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- W3122637238 date "1997-01-01" @default.
- W3122637238 modified "2023-09-25" @default.
- W3122637238 title "Cooperative Investments and the Value of Contracting" @default.
- W3122637238 hasPublicationYear "1997" @default.
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