The specificity of the asset (or investment) leads to the possibility of:

Question

Quizplus · Accepted Answer

Specific assets or investments create the possibility of opportunism because one party may be able to take advantage of the other party's dependence on the specific asset. This can lead to issues such as holdups, where one party demands a higher price or better terms due to their knowledge of the specific asset's value. Collusion and prisoner's dilemma are not directly related to asset specificity.

The Specificity of the Asset (Or Investment) Leads to the Possibility