Title: Joint Ownership and the Hold-up Problem Under Asymmetric Information
Abstract:In the standard property rights approach to the theory of the firm, joint ownership cannot be optimal, because it induces smaller investments in human capital than ownership by a single party. This re...In the standard property rights approach to the theory of the firm, joint ownership cannot be optimal, because it induces smaller investments in human capital than ownership by a single party. This result holds under the assumption that bargaining is always ex post efficient due to symmetric information. However, joint ownership can be optimal if the parties have private information about the payoffs that they can realize on their own.Read More
Publication Year: 2007
Publication Date: 2007-09-01
Language: en
Type: preprint
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