Is There a Hold-up Problem?

• We report on a hold-up experiment in which unilateral investment is followed by bilateral gaining according to Nash's demand game. Without communication, investment is low and coordination is poor. Unilateral communication facilitates coordination, but not perfectly. Successful coordination predominantly entails "fair" outcomes. Perhaps suprisingly, sellers (investors) do at least as well under buyer communication as under seller communication.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Publication and Content Type

art (subject category)

ref (subject category)