What type of agreements enable firms to hold each other hostage, which reduces the probability that they will behave opportunistically toward each other?
A)Cross-licensing
B)Franchise
C)Joint venture
D)Exporting
E)Mergers

Question

Quizplus · Accepted Answer

Cross-licensing agreements involve firms granting each other licenses to use their respective patents, creating mutual dependency and reducing the likelihood of opportunistic behavior.

What Type of Agreements Enable Firms to Hold Each Other