The reduction of co-ordination and hold-up problems depends on:
A)Governance arrangements
B)Manager contracts
C)Required quality of finished product
D)Cost of upstream vertical supplies
E)None of the above

Question

Quizplus · Accepted Answer

Governance arrangements, such as contracts and communication channels, can help reduce coordination and hold-up problems by specifying roles, responsibilities, and incentives for each party involved in the vertical relationship. Manager contracts (B) may also play a role in reducing hold-up problems, but they are not as effective as governance arrangements (A) in addressing coordination issues. Required quality of finished product (C) and cost of upstream vertical supplies (D) are important factors to consider in vertical relationships, but they do not directly affect coordination and hold-up problems.

The Reduction of Co-Ordination and Hold-Up Problems Depends On