exposure to hold-up

^_^ betty

New Member
Italian
Hi all!
I'm reading an economic paper (about alliances between firms) and I found frequently this phrase exposure to hold-up.
here some examples:

- a tradeoff involved in the development of realtionship-specific assetsis the exposure to hold-up, or the costs of redeploying the assets to their second-best specific application.

- Both firms have to be invested in the creation of relationship-specific assets to actually result in exposure to hold-up

- It is possible for some variations to be present where the nature of the specificity is not symmetrical, resulting in asymmetric exposure to hold-up


Could it means l'esposizione da sostenere? I mean, as two firms decide to make an alliance, they have to exposure themselves to reach some advantage from the alliance. please tell me if I'm misunderstainding!
However I think there could be a better translation....


Thanks a lot in advance!
betty
^_^
 
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  • AlabamaBoy

    Senior Member
    American English
    exposure to hold-up = the risk that the firm's investment earnings (for those investments related to the alliance) could be expropriated by their partners in the alliance
     
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