In Debt Restructuring, All Debt Claimants Must Agree on the Reassignment

question 7

Multiple Choice

In debt restructuring, all debt claimants must agree on the reassignment of debt claims, but one or more claimants has an incentive to wait for a better deal.This is known as the ___problem.

• A)holdout
• B)instigation
• C)concession
• D)compromise

---

Definitions:

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Collective Action

Action taken together by a group of people whose goal is to enhance their status and achieve a common objective.

System Justification Theory

A theory suggesting that people have a psychological tendency to defend and justify the status quo, even at the expense of personal or group interest.

Social Identity Theory

Social identity theory is a psychological framework that posits individuals derive part of their identity and self-esteem from the groups to which they belong.