Equilibrium incentives and accumulation of relational skills in a dynamic model of hold up

@inproceedings{Suzuki2006EquilibriumIA,
  title={Equilibrium incentives and accumulation of relational skills in a dynamic model of hold up},
  author={Yutaka Suzuki},
  year={2006}
}
We construct a dynamic model of Holdup by applying a framework in capital accumulation games, and derive the Markov perfect equilibrium of the game. Firmsf specific investments for the current period affect the relational skill (state variable) in the next period. Therefore, firms decide their individual investment levels taking into account their impact… CONTINUE READING