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3 edition of Hold-up, asset ownership, and reference points found in the catalog.

Hold-up, asset ownership, and reference points

Oliver D. Hart

Hold-up, asset ownership, and reference points

by Oliver D. Hart

  • 37 Want to read
  • 29 Currently reading

Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

    Subjects:
  • Commerce -- Econometric models

  • About the Edition

    We study two parties who desire a smooth trading relationship under conditions of value and cost uncertainty. A rigid contract fixing price works well in normal times since there is nothing to argue about. However, when value or cost is exceptional, one party will hold up the other , damaging the relationship and causing deadweight losses as parties withhold cooperation. We show that a judicious allocation of asset ownership can help by reducing the incentives to engage in hold up. In contrast to the literature, the driving force in our model is payoff uncertainty rather than noncontractible investments.

    Edition Notes

    StatementOliver Hart.
    SeriesNBER working paper series -- no. 13540., Working paper series (National Bureau of Economic Research) -- working paper no. 13540.
    ContributionsNational Bureau of Economic Research.
    The Physical Object
    Pagination42 p. :
    Number of Pages42
    ID Numbers
    Open LibraryOL17635962M
    OCLC/WorldCa181655590

      See Hart and Moore () for a model in which contracts serve as reference points and there may be inefficient shading ex post (cf. also Walker, , for a survey of the subsequent literature). Note that if there are two homogenous assets, then shared ownership with r 0 = is equivalent to giving each party one asset. The asset owner forfeits the risk associated with the asset but absorbs the credit exposure risk that the asset is subjected to. For example, if the asset price falls during the lifetime of the TRS, the receiver will pay the asset owner a sum equal to the amount of the asset price decline. Structure of a Total Return Swap Transaction.

      Another example is a trailer within a movie. Ownership: Territories where partners own an asset. Multiple partners can own an asset in different territories Reference: The reference material used for matching user uploaded videos Claims Embedded Assets Metadata Reference Ownership Match Policy Google Confidential and Proprietary Deferred tax assets on account of net operating losses are presented and disclosed under Non – current assets in the Balance Sheet. Sources of Net Operating Loss One of the most important things to note is that the net operating loss is the excess of taxable expenses or deductions over the taxable income.

    • Privatization involves the sale of shares or ownership in a company or the sale of oper-ating assets or services owned by the public sector. Privatization is most common and more widely accepted in sectors that are not traditionally considered public services, such as manufacturing, construction, etc. Hold-up, Asset Ownership, and Reference Points,” (). Incentives in Internal Capital Markets: Capital Constraints.


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Hold-up, asset ownership, and reference points by Oliver D. Hart Download PDF EPUB FB2

Hold-up, Asset Ownership, and Reference Points Oliver Hart. NBER Working Paper No. Issued in October NBER Program(s):Corporate Finance, Law and Economics We study two parties who desire a smooth trading relationship under conditions of value and cost by: Hold-Up, Asset Ownership, And Reference Points Article in Quarterly Journal of Economics (1) November with 47 Reads How we measure 'reads'Author: Oliver Hart.

Hold-up, Asset Ownership, and Reference Points * Oliver Hart. Oliver Hart Harvard University. Search for other works by this author on: Oliver Hart, Hold-up, Asset Ownership, and Reference Points, The And reference points book Journal of Economics, VolumeIssue 1, FebruaryCited by: HOLD-UP, ASSET OWNERSHIP, AND REFERENCE POINTS One aspect of our approach is that, in contrast to much of the literature, it focuses on ex post, rather than ex ante, inefficiencies.

Indeed, (noncontractible) relationship-specific investments play. Hold-Up, Asset Ownership, and Reference Points. NBER Working Paper No. w 43 Pages Posted: 24 Oct Last revised: 2 Jul See all articles by Oliver Hart However, when value or cost is exceptional, one party will hold up the other, damaging the relationship and causing deadweight losses as parties withhold cooperation.

We show Cited by: Hart, Oliver. “Hold-up, Asset Ownership, and Reference Points.” Quarterly Journal of Economics (1): Cited by: Oliver Hart, "Hold-up, Asset Ownership, and Reference Points," The Quarterly Journal of Economics, Oxford University Press, vol. (1), pages Handle.

Hold-Up, Asset Ownership, and Reference Points-super-* Article in Quarterly Journal of Economics (1) January with 23 Reads How we measure 'reads'. Hold-up, Asset Ownership, and Reference Points by Oliver Hart* April *Harvard University.

I am grateful to John Moore for discussions on some of the elements of this paper, to Mathias Dewatripont and Bob Gibbons for helpful comments, and to Georgy Egorov for excellent research assistance.

Financial support from the U. National Science. Hold-up, Asset Ownership, and Reference Points by Oliver Hart* April [revised, March ] *Harvard University. I am grateful to John Moore for discussions on some of the elements of this paper, and to Bob Gibbons and Birger Wernerfelt for many helpful conversations.

I would. On Ma I presented my paper titled Hold-up, Asset Ownership, and Reference Points in the Law, Economics, and Organization Seminar here at the Law School. This paper studies two parties who desire a smooth trading relationship under conditions of value and cost uncertainty.

Get this from a library. Hold-up, Asset Ownership, and Reference Points. [Oliver Hart] -- We study two parties who desire a smooth trading relationship under conditions of value and cost uncertainty. A rigid contract fixing price works well in normal times since there is nothing to argue.

BibTeX @MISC{Hart07hold-up,asset, author = {Oliver Hart}, title = {Hold-up, Asset Ownership, and Reference Point}, year = {}}. Hold-up, Asset Ownership, and Reference Points Oliver Hart NBER Working Paper No.

October JEL No. D23,D86,K12 ABSTRACT We study two parties who desire a smooth trading relationship under conditions of value and cost uncertainty. A rigid contract fixing price works well in normal times since there is nothing to argue about. Get this from a library. Hold-up, asset ownership, and reference points.

[Oliver D Hart; National Bureau of Economic Research.] -- We study two parties who desire a smooth trading relationship under conditions of value and cost uncertainty. A rigid contract fixing price works well in normal times since there is nothing to argue. HOLD- UP, ASSET OWNERSHIP, AND REFERENCE POINTS the conclusions, we will return to this issue and briefly discuss what happens when asset retrading is not possible.

The paper is organized as follows: In Section II, we lay out the basic model, and in Section III, we introduce assets. Section IV contains extensions and Section V concluding. We analyze noncontractible investments in a model with shading.

A seller can make an investment that affects a buyer’s value. The parties have outside options that depend on asset ownership. When shading is not possible and there is no contract renegotiation, an optimum can be achieved by giving the seller the right to make a take-it-or-leave-it offer.

Hold-Up, Asset Ownership, and Reference Points-super-* By Oliver Hart. Cite. BibTex; Full citation However, when value or cost is unusually high or low, one party will deviate from the contract and hold up the other party, causing deadweight losses as parties withhold cooperation.

We show that allocating asset ownership and indexing. Hold-Up, Asset Ownership, and Reference Points. By Oliver D. Hart. Cite. BibTex; Full citation We show that allocating asset ownership and indexing contracts can reduce the incentives to engage in hold-up.

In contrast to much of the literature, the driving force in our model is payoff uncertainty, rather than noncontractible investments.

Hold-up, asset ownership, and reference points. The Quarterly. By Oliver Hart. Abstract. However, when value or cost is unusually high or low, one party will deviate from the contract and hold up the other party, causing deadweight losses as parties withhold cooperation.

We show that allocating asset ownership and indexing contracts can. Oliver Hart, "Hold-up, Asset Ownership, and Reference Points," The Quarterly Journal of Economics, Oxford University Press, vol. (1), pages Full references (including those not matched with items on IDEAS). Abstract. By introduction of effective outside options, the article analyzed classical Fisher-GM on a new perspective, and concluded: in the contract of Fisher-GM, because of a better mechanism design, Fisher didn’t exist any hold-up motivation; but there were effective outside options, GM wanted to hold up Fisher by migration, while Fisher avoided it by refusal.asset ownership and formal control rights can reduce this underinvestment.2 While the above literature has generated some useful insights about firm boundaries, it has some shortcomings.

3 Two that seem particularly important to us are the following.