The shadow of the future in business relationships

Jan Johanson and Dag Smith

No 1992:3, Working Papers from Uppsala University, Department of Business Studies

Abstract:

Empirical studies have demonstrated the existence and importance of business relationships. In particular, it has been suggested that investments in such relationships are significant assets of the parties engaged in the relationship. This article analyses in some detail the valuation of such assets in terms of the behavioural pattern of the parties and some other characteristics of the assets. The analysis is based on an interpretation of the relationships as Prisoner's Dilemma games.

Pages: 29 pages
Date: 1992
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