In general, the ________ tangible the resources and capabilities that are to be brought to a strategy alliance, the ________ costly it will be to estimate their value before an alliance is created, and the ________ likely it is that adverse selection will occur.

Question

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The less tangible the resources and capabilities are, the more difficult it is to estimate their value before an alliance is created. As a result, adverse selection is more likely to occur. On the other hand, the more tangible the resources and capabilities are, the easier it is to estimate their value before an alliance is created, thereby reducing the likelihood of adverse selection. However, the more tangible the resources and capabilities are, the more costly they are likely to be.

In General, the ________ Tangible the Resources and Capabilities That