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Mixed sharing rules


  • Roger Hartley
  • Richard Cornes


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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    References listed on IDEAS

    1. Cauley, Jon & Cornes, Richard & Sandler, Todd, 1999. "Stakeholder incentives and reforms in China's state-owned enterprises: A common-property theory," China Economic Review, Elsevier, vol. 10(2), pages 191-206.
    2. Watts, Alison, 1996. "On the Uniqueness of Equilibrium in Cournot Oligopoly and Other Games," Games and Economic Behavior, Elsevier, vol. 13(2), pages 269-285, April.
    3. Cornes, Richard & Sandler, Todd, 1983. "On Commons and Tragedies," American Economic Review, American Economic Association, vol. 73(4), pages 787-792, September.
    4. Corchon, Luis C. & Puy, M. Socorro, 1998. "Individual rationality and voting in cooperative production," Economics Letters, Elsevier, vol. 59(1), pages 83-90, April.
    5. Richard Cornes & Roger Hartley, 2002. "Dissipation in Rent-seeking Contests with Entry Costs," Game Theory and Information 0211001, EconWPA.
    6. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    7. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-1037, September.
    8. Watts, Alison, 2002. "Uniqueness of equilibrium in cost sharing games," Journal of Mathematical Economics, Elsevier, vol. 37(1), pages 47-70, February.
    9. Champsaur, Paul & Laroque, Guy, 1981. "Fair allocations in large economies," Journal of Economic Theory, Elsevier, vol. 25(2), pages 269-282, October.
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    More about this item


    surplus sharing; cost sharing; aggregative games;

    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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