Which of the following is NOT an implication of specialized investments that lead to increased transaction costs?
A) Costly bargaining
B) Opportunism and the hold-up problem
C) Underinvestment in specialized investments
D) Incentive contracts

Question

Quizplus · Accepted Answer

Incentive contracts are actually a potential solution to the problems that arise from specialized investments leading to increased transaction costs. Costly bargaining, opportunism and the hold-up problem, and underinvestment in specialized investments are all implications that can result from these costs.

Which of the Following Is NOT an Implication of Specialized