Bargaining under incomplete information, fairness, and the hold-up problem

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2009
Volume: 71
Issue: 2
Pages: 486-494

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In the hold-up problem incomplete contracts cause the proceeds of relationship-specific investments to be allocated by bargaining. This paper investigates the corresponding investment incentives if individuals have heterogeneous fairness preferences. Individual preferences are taken to be private information. Investments can then signal preferences and thereby influence beliefs and bargaining behavior. In consequence, individuals might choose high investments in order not to signal information that is unfavorable in the ensuing bargaining.

Technical Details

RePEc Handle
repec:eee:jeborg:v:71:y:2009:i:2:p:486-494
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29