Hold-up problem

The hold-up problem is when two people agree to split the money they make on a project, but one of them changes their mind when the money comes in. For example, let's say you and your friend have a business selling cupcakes. You and your friend agree to split the money from the cupcakes evenly. But then after you sell a lot of cupcakes, your friend suddenly decides he wants to keep all the money for himself. This is the hold-up problem.