The Essence of Hold-up Problem and the Boundary of Firm

摘要

Incomplete contracts theory consider that bounded rationality and ex post opportunistic behaviour by the agents will lead to the problem of hold-up.But complete contracts theory consider there are some shortcomings in incomplete contracts theory,for example, exogenous incompleteness and inconsistent hypothesis of bounded rationality,furthermore nonverifiability can not hinder efficient investment.As reponse, incomplete contracts theory introduces complexity and reference points to explain that even under complete rationality will also lead to the problem of hold-up,which make the incompleteness of contracts is.endogenous. In the end,the thesis explain the meaning of holdup to the boundary of firm.