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Cooperative Production and Efficiency

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Author Info
Carmen Beviá ()
Luis C. Corchón ()

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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. The sharing rule bears no resemblance to those considered by the previous literature. 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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Publisher Info
Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 696.07.

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Length: 17
Date of creation: 23 Apr 2007
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Handle: RePEc:aub:autbar:696.07

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Related research
Keywords: Cooperative Production; sharing rules; efficiency;

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Find related papers by JEL classification:
D29 - Microeconomics - - Production and Organizations - - - Other
D6 - Microeconomics - - Welfare Economics
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation

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References listed on IDEAS
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  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)
    Other versions:
  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 2009-11-24.

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