Advanced Search
MyIDEAS: Login to save this article or follow this journal

Market Correlation and Property Rights

Contents:

Author Info

  • Shin-Hwan Chiang
  • Xiang Li

Abstract

This paper examines the origins of property rights in the presence of production uncertainty. Since stealing others' possessions is permitted under anarchy, the winner is able to enjoy the lion's share of total outputs produced by all parties, and this generates a diversification effect, since the random outputs are polled together. Taking this effect into account, we characterize the subgame-perfect equilibrium for our two-stage game. Specifically, the emergence of property rights is shown to depend on players' incentives to fight, variances, and market correlations. The model predicts that property rights are more likely to emerge when market correlations increase.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ingentaconnect.com/content/mohr/jite/2010/00000166/00000003/art00003
Download Restriction: Fulltext access is included for subscribers to the printed version.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 166 (2010)
Issue (Month): 3 (September)
Pages: 426-438

as in new window
Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201009)166:3_426:mcapr_2.0.tx_2-f

Contact details of provider:
Web page: http://www.mohr.de/jite

Order Information:
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Email:

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(201009)166:3_426:mcapr_2.0.tx_2-f. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.