Cooperative Investments and the Value of Contracting: Coase vs Williamson

Yeon-Koo Che and D.B. Hausch

Working papers from Wisconsin Madison - Social Systems

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 approximately-designed contracts. These studies have, for the most part, restricted attention to specific 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" specific investments that directly benefit the investor's partner (e.g., the seller's investment improves the buyer's value of the good).

Keywords: INVESTMENTS; CONTRACTS; WELFARE ECONOMICS (search for similar items in EconPapers)
JEL-codes: E20 E22 K10 K12 (search for similar items in EconPapers)
Pages: pages
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (7)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:att:wimass:9608

Access Statistics for this paper

More papers in Working papers from Wisconsin Madison - Social Systems UNIVERSITY OF WISCONSIN MADISON, SOCIAL SYSTEMS RESEARCH INSTITUTE(S.S.R.I.), MADISON WISCONSIN 53706 U.S.A..
Bibliographic data for series maintained by Ailsenne Sumwalt ().