Examine the example of the Soviet Defence contracts as an example of the Hold-Up problem? What inefficiencies did this cause?
Why can’t complete contracts be written according to his paper?
Explain how the Hold Up problem can be represented using a game tree (as in Figures shown in the paper)
Examine the outcome of the game with Payoff 1 game structure
Examine the outcome of the game with Payoff 2 game structure
Examine the outcome of the game in the generic case (without specific numeric values)
What are the economic consequences of the Hold-Up problem in this case?
