IDEAS home Printed from https://ideas.repec.org/p/cte/werepe/we070502.html
   My bibliography  Save this paper

Cooperative production and efficiency

Author

Listed:
  • Beviá, Carmen
  • Corchón, Luis C.

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

  • Beviá, Carmen & Corchón, Luis C., 2007. "Cooperative production and efficiency," UC3M Working papers. Economics we070502, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:we070502
    as

    Download full text from publisher

    File URL: https://e-archivo.uc3m.es/bitstream/handle/10016/739/we0705021.pdf?sequence=1
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Leroux, Justin, 2008. "Profit sharing in unique Nash equilibrium: Characterization in the two-agent case," Games and Economic Behavior, Elsevier, vol. 62(2), pages 558-572, March.
    2. Leroux, Justin, 2005. "Strategyproof Profit Sharing: A Two-Agent Characterization," Working Papers 2005-04, Rice University, Department of Economics.
    3. Shigehiro Serizawa, 1999. "Strategy-Proof and Symmetric Social Choice Functions for Public Good Economies," Econometrica, Econometric Society, vol. 67(1), pages 121-146, January.
    4. Leroux, Jistin, 2004. "Strategy-Proofness and Efficiency Are Incompatible in Production Economies," Working Papers 2004-07, Rice University, Department of Economics.
    5. Shigehiro Serizawa, 1997. "Strategy-proof and individually rational social choice functions for public good economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 379-380.
    6. M. J. Browning, 1983. "Efficient Decentralisation with a Transferable Good," Review of Economic Studies, Oxford University Press, vol. 50(2), pages 375-381.
    7. François Maniquet & Yves Sprumont, 1999. "Efficient strategy-proof allocation functions in linear production economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(3), pages 583-595.
    8. Fabella, Raul V., 1988. "Natural team sharing and team productivity," Economics Letters, Elsevier, vol. 27(2), pages 105-110.
    9. Shasikanta Nandeibam, 2003. "Implementation in teams," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(3), pages 569-581, October.
    10. Groves, Theodore & Loeb, Martin, 1975. "Incentives and public inputs," Journal of Public Economics, Elsevier, vol. 4(3), pages 211-226, August.
    11. 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;The Society for Social Choice and Welfare, vol. 19(2), pages 369-379.
    12. Pfingsten, Andreas, 1991. "Surplus-sharing methods," Mathematical Social Sciences, Elsevier, vol. 21(3), pages 287-301, June.
    13. Liqun Liu & Guoqiang Tian, 1999. "A characterization of the existenceof optimal dominant strategy mechanisms," Review of Economic Design, Springer;Society for Economic Design, vol. 4(3), pages 205-218.
    14. Ohseto, Shinji, 1997. "Strategy-proof mechanisms in public good economies," Mathematical Social Sciences, Elsevier, vol. 33(2), pages 157-183, April.
    15. Rajat Deb & Shinji Ohseto, 1999. "Strategy-proof and individually rational social choice functions for public good economies: A note," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(3), pages 685-689.
    16. Hervé Moulin, 1994. "Serial Cost-Sharing of Excludable Public Goods," Review of Economic Studies, Oxford University Press, vol. 61(2), pages 305-325.
    17. Leroux, Justin, 2004. "Strategy-proofness and efficiency are incompatible in production economies," Economics Letters, Elsevier, vol. 85(3), pages 335-340, December.
    18. 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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:matsoc:v:90:y:2017:i:c:p:182-190 is not listed on IDEAS

    More about this item

    JEL classification:

    • D29 - Microeconomics - - Production and Organizations - - - Other
    • D6 - Microeconomics - - Welfare Economics
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cte:werepe:we070502. 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: (Ana Poveda). General contact details of provider: http://www.eco.uc3m.es/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.