Question: Firms do not always need to bring transactions in - house to eliminate the hold up problem. For example, firms can rely on external suppliers
Firms do not always need to bring transactions inhouse to eliminate the hold up problem. For example, firms can rely on external suppliers when
Firms can write detailed contracts that anticipate a variety of contingencies
The supplier is wellknown
The firm rarely buys the product from the supplier
All of the above
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