IDEAS home Printed from https://ideas.repec.org/a/oup/jleorg/v35y2019i3p489-512..html
   My bibliography  Save this article

Capital Assembly

Author

Listed:
  • Robert Akerlof
  • Richard Holden

Abstract

This article explores the problem of assembling capital for projects. It can be difficult to assemble capital, when it is disaggregated, for a project that exhibits increasing returns. Small investors may be reluctant to participate, as they may question the ability of the project owner to raise the additional capital he requires. This suggests the possibility that agents with blocks of capital (capital that is already aggregated) might earn rents. Similarly, agents with “network capital”—that is, an ability to aggregate the capital of others—may earn rents. In this article, we develop a simple theory of capital assembly and discuss the implications for investment and rent distribution.

Suggested Citation

  • Robert Akerlof & Richard Holden, 2019. "Capital Assembly," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(3), pages 489-512.
    • Handle: RePEc:oup:jleorg:v:35:y:2019:i:3:p:489-512.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jleo/ewz012
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D30 - Microeconomics - - Distribution - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jleorg:v:35:y:2019:i:3:p:489-512.. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jleo .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.