Which of the following would be a deterrent to companies seeking to achieve a competitive advantage through one company making an investment in a specialized asset so it can trade with another?
A) Tapered integration
B) The risk of holdup
C) Mutual dependence
D) Transfer prices
E) Technological change

Question

Quizplus · Accepted Answer

The risk of holdup refers to the possibility that the other company will increase the price or demand additional concessions once the investing company has made the specialized asset investment, making it a less attractive strategy for achieving a competitive advantage. The other options listed are not directly related to this specific strategy.

Which of the Following Would Be a Deterrent to Companies