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Know-how disclosure and incomplete contracts

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  • Rosenkranz, Stephanie
  • Schmitz, Patrick W.

Abstract

When two parties invest in human capital and at the same time decide on know-how disclosure it can be shown that joint ownership with veto power is the optimal ownership structure, given that only incomplete contracts can be written.

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File URL: http://www.sciencedirect.com/science/article/B6V84-3WHC4KR-9/2/4758bcca4b6c73bfef66fb803dd6479a
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 63 (1999)
Issue (Month): 2 (May)
Pages: 181-185

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Handle: RePEc:eee:ecolet:v:63:y:1999:i:2:p:181-185

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Web page: http://www.elsevier.com/locate/ecolet

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  1. Bhattacharya, S. & Glazer, J. & Sappington, D., 1991. "Licensing and the Sharing of Knowledge in Research Joint Ventures," Discussion Paper 1991-20, Tilburg University, Center for Economic Research.
  2. Moore, John, 1992. "The firm as a collection of assets," European Economic Review, Elsevier, vol. 36(2-3), pages 493-507, April.
  3. d’ASPREMONT, Claude & BHATTACHARYA, Sudipto & GERARD-VARET , Louis-André, 1996. "Bargaining and Sharing Knowledge," CORE Discussion Papers 1996012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Hart, Oliver D. & Moore, John, 1990. "Property Rights and the Nature of the Firm," Scholarly Articles 3448675, Harvard University Department of Economics.
  5. Gandal, Neil & Scotchmer, Suzanne, 1993. "Coordinating research through research joint ventures," Journal of Public Economics, Elsevier, vol. 51(2), pages 173-193, June.
  6. Maija Halonen, 2002. "Reputation And The Allocation Of Ownership," Economic Journal, Royal Economic Society, vol. 112(481), pages 539-558, July.
  7. David De Meza & Ben Lockwood, 1998. "Does Asset Ownership Always Motivate Managers? Outside Options And The Property Rights Theory Of The Firm," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 361-386, May.
  8. Che, Y.K. & Hausch, D.B., 1997. "Cooperative Investments and the Value of Contracting," Working papers 9714, Wisconsin Madison - Social Systems.
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