But, an agent by using a weak exterior option may well try and bluff by also selecting a massive financial investment, so that you can make the principal think that the agent has a solid outdoors solution (so which the principal is likely to make a much better agreement supply towards the agent). That's why, when an agent has non-public information about his exterior option, signalling may perhaps mitigate the maintain-up challenge. (Self-)signalling and gambling[edit]
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