for example, employees, who ordinarily assume little risk when they can easily move from one firm risk when they can easily move from one firm to another, are at greater risk when they develop skills that are of value only to their current employer. When their skills are firm specific, a move to another firm usually results in lower pay. Similarly, a supplier who invests in special equipment to manufacture goods used by only one customer is provider becomes “locked in” and thus has a greater need for protection than, say, customers.