If each of the parties to a contract controls a resource essential for the other's survival, opportunistic behavior by any of them will increase the value of the transaction.

Question

Quizplus · Accepted Answer

Opportunistic behavior in such a scenario typically leads to mistrust and inefficiencies, potentially decreasing the value of the transaction as parties may seek safeguards or alternative arrangements to protect against opportunism.

If Each of the Parties to a Contract Controls a Resource