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Mixed sharing rules

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  • Roger Hartley
  • Richard Cornes

Abstract

It is wellknown that a group of individuals contributing to a joint production process with diminishing returns will tend, in equilibrium, to put in too little effort if shares of the output are exogenous, and will put in too much effort if their shares are proportional to their inputs. We consider 'mixed' sharing rules, in which some proportion of the output will be shared exogenously, and the rest proportionally. We examine the efficiency properties of such rules, compare them with serial sharing rules, and suggest a sharing game whose noncooperative equilibrium is, in certain circumstances, Pareto efficient

Suggested Citation

  • Roger Hartley & Richard Cornes, 2004. "Mixed sharing rules," Econometric Society 2004 Australasian Meetings 196, Econometric Society.
    • Handle: RePEc:ecm:ausm04:196
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    File URL: http://repec.org/esAUSM04/up.29210.1077802256.pdf
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    References listed on IDEAS

    as
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    6. Richard Cornes & Roger Hartley, 2002. "Dissipation in Rent-seeking Contests with Entry Costs," Game Theory and Information 0211001, University Library of Munich, Germany.
    7. Amartya K. Sen, 1966. "Labour Allocation in a Cooperative Enterprise," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 33(4), pages 361-371.
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    More about this item

    Keywords

    surplus sharing; cost sharing; aggregative games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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