Publication:
Commitment with renegotiable debt contracts and verifiable cash flow

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Publication Date

2008

Language

English

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Journal Article

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Abstract

We study a Buyer-Seller relationship with one-sided relationship-specific investment. Debt commits the Seller not to trade at a low price even though it is renegotiable, and the cash flow is verifiable.

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Source:

Economics Letters

Publisher:

Elsevier Science Sa

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Subject

Economics

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