IDEAS home Printed from https://ideas.repec.org/p/bge/wpaper/305.html
   My bibliography  Save this paper

Cooperative Production and Efficiency

Author

Listed:
  • Carmen Beviá
  • Luis C. Corchón

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.

Suggested Citation

  • Carmen Beviá & Luis C. Corchón, 2007. "Cooperative Production and Efficiency," Working Papers 305, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:305
    as

    Download full text from publisher

    File URL: https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/305.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
    2. 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.
    3. Leroux, Justin, 2005. "Strategyproof Profit Sharing: A Two-Agent Characterization," Working Papers 2005-04, Rice University, Department of Economics.
    4. Fabella, Raul V., 1988. "Natural team sharing and team productivity," Economics Letters, Elsevier, vol. 27(2), pages 105-110.
    5. Shasikanta Nandeibam, 2003. "Implementation in teams," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 569-581, October.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beviá, Carmen & Corchón, Luis C., 2009. "Cooperative production and efficiency," Mathematical Social Sciences, Elsevier, vol. 57(2), pages 143-154, March.
    2. Bevia Carmen & Corchón Luis C, 2006. "Rational Sabotage in Cooperative Production with Heterogeneous Agents," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-29, November.
    3. Carmen Bevia & Luis Corchon, "undated". "Rational Sabotage in Cooperative Production," UFAE and IAE Working Papers 541.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    4. Leroux, Justin, 2005. "Strategyproof Profit Sharing in Partnerships: Improving upon Autarky," Working Papers 2005-05, Rice University, Department of Economics.
    5. Jörg Franke, 2014. "Equal, proportional, and mixed sharing of cooperative production under the threat of sabotage," Journal of Economics, Springer, vol. 113(3), pages 253-273, November.
    6. Raul V. Fabella, 2013. "Moral Hazard and Cooperation in Competing Teams," UP School of Economics Discussion Papers 201308, University of the Philippines School of Economics.
    7. Raul Fabella, 2000. "Generalized sharing, membership size and pareto efficiency in teams," Theory and Decision, Springer, vol. 48(1), pages 47-60, February.
    8. Raul V. Fabella, 2013. "Salience and Cooperation Among Rational Egoists," UP School of Economics Discussion Papers 201309, University of the Philippines School of Economics.
    9. Torregrosa, Ramón J., 2018. "On the endogenous determination of the degree of meritocracy in large cooperatives," Economics Letters, Elsevier, vol. 171(C), pages 41-45.
    10. repec:bla:annpce:v:89:y:2018:i:1:p:87-107 is not listed on IDEAS
    11. Depken II, Craig A. & Redmount, Esther & Snow, Arthur, 2001. "Shirking and the choice of technology: a theory of production inefficiency with an empirical application," Journal of Economic Behavior & Organization, Elsevier, vol. 44(4), pages 383-402, April.
    12. Caselli, Francesco & Brzustowski, Thomas, 2021. "Economic Growth in a Cooperative Economy," CEPR Discussion Papers 15720, C.E.P.R. Discussion Papers.
    13. Zou, Liang, 1992. "Ownership structure and efficiency: An incentive mechanism approach," Journal of Comparative Economics, Elsevier, vol. 16(3), pages 399-431, September.
    14. Karl Jandoc & Ruben Juarez, 2024. "Generalized consistent ranking and the formation of self-enforcing coalitions," Review of Economic Design, Springer;Society for Economic Design, vol. 28(1), pages 69-88, February.
    15. Dhritiman Gupta, 2023. "Prize sharing rules in collective contests: when do social norms matter?," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 221-244, February.
    16. Raul Fabella, 2000. "A Contractarian Approach to Pareto Efficiency in Teams: A Note," Theory and Decision, Springer, vol. 48(2), pages 139-149, March.
    17. Beviá, Carmen & Corchón, Luis C., 2017. "Growth in Illyria: The role of meritocracy in the accumulation of human capital," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 182-190.
    18. Thomas Brzustowski & Francesco Caselli, 2021. "Economic Growth in a Cooperative Economy," Discussion Papers 2101, Centre for Macroeconomics (CFM).
    19. Jie Ren & Jar-Der Luo & Ke Rong, 2020. "How Do Venture Capitals Build Up Syndication Ecosystems for Sustainable Development?," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    20. Rajesh K. Aggarwal & Andrew A. Samwick, 1999. "Executive Compensation, Strategic Competition, and Relative Performance Evaluation: Theory and Evidence," Journal of Finance, American Finance Association, vol. 54(6), pages 1999-2043, December.
    21. Bogetoft, Peter & Nielsen, Kurt, 2003. "Yardstick Based Procurement Design In Natural Resource Management," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25910, International Association of Agricultural Economists.

    More about this item

    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:bge:wpaper:305. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Bruno Guallar (email available below). General contact details of provider: https://edirc.repec.org/data/bargses.html .

    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.