Editing Hold-up problem (section)

== Underinvestment ==
It is often argued that the possibility of a hold-up can lead to underinvestment in relation-specific investment and thus [[inefficiency]]. Underinvestment occurs because investors cannot guarantee themselves a sufficient share of the return through ex post bargaining.<ref>Ellingsen, T., & Johannesson, M. (2004). Is There a Hold-Up Problem? ''The Scandinavian Journal of Economics, 3''(106), 475-494. {{JSTOR|3441120}}</ref> Consequently, predictions of the outcome are very sensitive to assumptions made about the bargaining process. The bargaining process can be seen as a game with multiple equilibria. Underinvestment may occur only when the agent fails to coordinate on an efficient equilibrium.