什么是hold out problem？

问题如下：

After months of negotiation, the WRB is created. The WRB regulates the price and the amount of water flowing from the dams, which are leased and maintained by the government for 20 years. During this time, the government pays all maintenance costs without any offset to lease payments.

Upon leasing the dams, the government needs to invest in roads to gain access to the dams. This sort of investment had not been considered when assessing the repair and maintenance of the dams. Although delayed, the improved dams allow for more water than had been anticipated to become available and at lower prices owing to the actions of the WRB.

As part of the compromise to have water regulated, the farming and manufacturing groups had agreed to invest in technology and practices for the more efficient use of water. Although the manufacturers have been making these investments to use water more efficiently, thereby reducing demand and helping to keep water prices low, the farmers have chosen not to do so. Given the lower price of water because of improvements to the dams, the farmers perceive no net revenue benefits from additional investment in the more efficient use of water.

When assessing the outcomes from the regulatory solution for Central Aldorria’s water problem, which of the following statements is most accurate?

选项：

A.There is an indirect cost due to the farmer’s behavior. B.The behavior of the farmers is an example of a “hold out” problem. C.The additional net regulatory burden due to unanticipated events is equal to the cost of building roads.

解释：

A is correct. Because water became more plentiful as a result of the repaired dams and cheaper because of the WRB, the farmers have chosen not to make investments related to the more efficient use of water. The inefficient use of water by the farmers is an indirect cost due to the regulatory solution.

B is incorrect because there is no evidence of the farmers renegotiating the regulatory agreement after an unrecoverable investment has been made by the manufacturers or government.

C is incorrect because the total net regulatory burden due to unanticipated events equals the unanticipated cost of the roads plus the cost of delaying the dam repair less the unanticipated benefit of greater water availability.