Department of Economics2024-11-0920080165-176510.1016/j.econlet.2007.06.0352-s2.0-42949100961http://dx.doi.org/10.1016/j.econlet.2007.06.035https://hdl.handle.net/20.500.14288/8552We 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.EconomicsJournal Article2562348000099012