One problem with infrastructure concession contracts given to private firms in Latin America was the tendency for
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One problem with infrastructure concession contracts given to private firms in Latin America was the tendency for those firms to renegotiate the contracts in their favor. Explain this phenomenon in terms of the hold-up problem analyzed in Chapter 7.
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In Chapter 7 the holdup problem refers to the situation where one party in a contract has the ability to exploit the other partys dependency or specific investments made in relation to the contract Th...View the full answer
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