Which of the following is not a solution to the hold- up problem?
A)long- term contracts
B)horizontal integration
C)reputation.
D)vertical integration

Question

Quizplus · Accepted Answer

Horizontal integration involves merging with or acquiring competitors, which may lead to antitrust concerns and reduce competition in the market. It is not a solution to the hold-up problem, which refers to the issue of opportunistic behavior in negotiating with specific partners. Long-term contracts, reputation, and vertical integration can all be solutions to the hold-up problem.

Which of the Following Is Not a Solution to the Hold-