When transactions involve a high degree of asset-specificity (where the value of an investment made to support a specific transaction is much less in…

When transactions involve a high degree of asset-specificity (where the value of an investment made to support a specific transaction is much less in its next best application) the seller may be locked-in by virtue of her investment. Which statement(s) is (are) accurate:

a)The seller’s vulnerability is usually offset to a large extent by the that of the buyer who cannot turn readily to substitute suppliers

b)Both buyer and seller will typically work hard to make the exchanges and relationship persist

c)Both (a) and (b)

 
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