Sequential Investment, Hold-up and Strategic Delay
We investigate hold-up with simultaneous and sequential investment. We show that if the encouragement effect of sequential complementary investments dominates the delay effect, sequential investment alleviates the underinvestment caused by the hold-up problem. Further, if it is allowed to choose whe...
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2010
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sg-smu-ink.soe_research-24712019-05-20T10:10:13Z Sequential Investment, Hold-up and Strategic Delay ZHANG, Juyuan ZHANG, Yi We investigate hold-up with simultaneous and sequential investment. We show that if the encouragement effect of sequential complementary investments dominates the delay effect, sequential investment alleviates the underinvestment caused by the hold-up problem. Further, if it is allowed to choose when to invest, strategic delay occurs when the encouragement effect of sequential complementary investments dominates the delay effect. 2010-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1472 https://ink.library.smu.edu.sg/context/soe_research/article/2471/viewcontent/workshop_5CSequentialHoldup_dynamic.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Sequential Investment Hold-up Underinvestment Strategic Delay Finance |
| institution |
Singapore Management University |
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SMU Libraries |
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Asia |
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Singapore Singapore |
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InK@SMU |
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English |
| topic |
Sequential Investment Hold-up Underinvestment Strategic Delay Finance |
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Sequential Investment Hold-up Underinvestment Strategic Delay Finance ZHANG, Juyuan ZHANG, Yi Sequential Investment, Hold-up and Strategic Delay |
| description |
We investigate hold-up with simultaneous and sequential investment. We show that if the encouragement effect of sequential complementary investments dominates the delay effect, sequential investment alleviates the underinvestment caused by the hold-up problem. Further, if it is allowed to choose when to invest, strategic delay occurs when the encouragement effect of sequential complementary investments dominates the delay effect. |
| format |
text |
| author |
ZHANG, Juyuan ZHANG, Yi |
| author_facet |
ZHANG, Juyuan ZHANG, Yi |
| author_sort |
ZHANG, Juyuan |
| title |
Sequential Investment, Hold-up and Strategic Delay |
| title_short |
Sequential Investment, Hold-up and Strategic Delay |
| title_full |
Sequential Investment, Hold-up and Strategic Delay |
| title_fullStr |
Sequential Investment, Hold-up and Strategic Delay |
| title_full_unstemmed |
Sequential Investment, Hold-up and Strategic Delay |
| title_sort |
sequential investment, hold-up and strategic delay |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
2010 |
| url |
https://ink.library.smu.edu.sg/soe_research/1472 https://ink.library.smu.edu.sg/context/soe_research/article/2471/viewcontent/workshop_5CSequentialHoldup_dynamic.pdf |
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1770571470682980352 |