In order to improve the service quality of the logistics cooperation and to reduce the logistics costs,the cooperation contract should have the mechanism to encourage specific investment.

It argues hold up, commitment, dependence, and specific investment, which have been focused by most successful researches, are most important issues in studying inter firm relationship management.

Based on analyzing the conditions for self-enforcement of relational contracts,the paper designs optimized relational contracts algorithms,finding that specific investment can reach Pareto optimality under relational contracts.

The Characteristics and Roles of Specific Investments in Channel-partner Relationship:A Study of Japanese Automotive Industry;

This paper examines this “expropriation” scenario but also considers whether specific investments may actually “bond” the receiver and reduce opportunism under certain conditions.

The incompletion of audit contract and auditors special investment in the initial auditing breed an incentive that clients managers hold up auditors.

The business relationships often depend on a large amount of special investment in manufacturing supply chain.