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Cooperative production and efficiency

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Author Info
Beviá, Carmen
Corchón, Luis C.

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Abstract

We characterize the sharing rule for which a contribution mechanism achieves efficiency in a cooperative production setting when agents are heterogeneous. This rule differs from the one obtained by Sen for the case of identical agents. We also show for a large class of sharing rules that if Nash equilibrium yields efficient allocations, the production function displays constant returns to scale, a case in which cooperation in production is useless.

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File URL: http://www.sciencedirect.com/science/article/B6V88-4TMSNRF-1/2/1965e2b49e86e16f4ca89bea91ef1507
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Publisher Info
Article provided by Elsevier in its journal Mathematical Social Sciences.

Volume (Year): 57 (2009)
Issue (Month): 2 (March)
Pages: 143-154
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Handle: RePEc:eee:matsoc:v:57:y:2009:i:2:p:143-154

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Web page: http://www.elsevier.com/locate/inca/505565

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Related research
Keywords: Cooperative production Efficiency Incentives;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Luis C. Corchón & M. Socorro Puy, 2002. "Existence and Nash implementation of efficient sharing rules for a commonly owned technology," Social Choice and Welfare, Springer, vol. 19(2), pages 369-379. [Downloadable!] (restricted)
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  2. Fabella, Raul V., 1988. "Natural team sharing and team productivity," Economics Letters, Elsevier, vol. 27(2), pages 105-110. [Downloadable!] (restricted)
  3. Leroux, Justin, 2005. "Strategyproof Profit Sharing: A Two-Agent Characterization," Working Papers 2005-04, Rice University, Department of Economics. [Downloadable!]
  4. Pfingsten, Andreas, 1991. "Surplus-sharing methods," Mathematical Social Sciences, Elsevier, vol. 21(3), pages 287-301, June. [Downloadable!] (restricted)
  5. Shasikanta Nandeibam, 2003. "Implementation in teams," Economic Theory, Springer, vol. 22(3), pages 569-581, October. [Downloadable!] (restricted)
  6. Browning, M J, 1983. "Efficient Decentralisation with a Transferable Good," Review of Economic Studies, Blackwell Publishing, vol. 50(2), pages 375-81, April. [Downloadable!] (restricted)
  7. Roemer John E. & Silvestre Joaquim, 1993. "The Proportional Solution for Economies with Both Private and Public Ownership," Journal of Economic Theory, Elsevier, vol. 59(2), pages 426-444, April. [Downloadable!] (restricted)
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This page was last updated on 2009-12-3.

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