Investments as Signals of Outside Options

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GOLDLÜCKE, Susanne, Patrick W. SCHMITZ, 2014. Investments as Signals of Outside Options. In: Journal of Economic Theory. 150, pp. 683-708. ISSN 0022-0531. Available under: doi: 10.1016/j.jet.2013.12.001

@article{Goldlucke2014Inves-28566, title={Investments as Signals of Outside Options}, year={2014}, doi={10.1016/j.jet.2013.12.001}, volume={150}, issn={0022-0531}, journal={Journal of Economic Theory}, pages={683--708}, author={Goldlücke, Susanne and Schmitz, Patrick W.} }

<rdf:RDF xmlns:dcterms="" xmlns:dc="" xmlns:rdf="" xmlns:bibo="" xmlns:dspace="" xmlns:foaf="" xmlns:void="" xmlns:xsd="" > <rdf:Description rdf:about=""> <dcterms:rights rdf:resource=""/> <dcterms:bibliographicCitation>Journal of Economic Theory ; 150 (2014). - S. 683-708</dcterms:bibliographicCitation> <dc:creator>Schmitz, Patrick W.</dc:creator> <dc:creator>Goldlücke, Susanne</dc:creator> <dc:contributor>Goldlücke, Susanne</dc:contributor> <bibo:uri rdf:resource=""/> <dc:language>eng</dc:language> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dspace:isPartOfCollection rdf:resource=""/> <dc:rights>terms-of-use</dc:rights> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <dcterms:available rdf:datatype="">2014-08-04T07:38:59Z</dcterms:available> <dcterms:title>Investments as Signals of Outside Options</dcterms:title> <dc:contributor>Schmitz, Patrick W.</dc:contributor> <dcterms:issued>2014</dcterms:issued> <dcterms:isPartOf rdf:resource=""/> <dcterms:abstract xml:lang="eng">Consider a seller who can make an observable but non-contractible investment to improve an intermediate good that is specialized to a particular buyerʼs needs. The buyer then makes a take-it-or-leave-it offer to the seller. The seller has private information about the fraction of the ex post surplus that he can realize on his own. Compared to a situation with complete information, additional investment incentives are generated by the sellerʼs desire to pretend a strong outside option. On the other hand, ex post efficiency is not attained since asymmetric information at the bargaining stage sometimes leads to inefficient separations.</dcterms:abstract> <dc:date rdf:datatype="">2014-08-04T07:38:59Z</dc:date> </rdf:Description> </rdf:RDF>

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