Cookies?
Library Header Image
LSE Research Online LSE Library Services

Efficient dissolution of partnerships and the structure of control

Ornelas, Emanuel and Turner, John L. (2007) Efficient dissolution of partnerships and the structure of control. Games and Economic Behavior, 60 (1). pp. 187-199. ISSN 0899-8256

Full text not available from this repository.

Abstract

Past work has shown that asymmetric information and asymmetric ownership affect the possibility of efficient dissolution of partnerships. We show in this paper that control is also a central determinant of the possibility of efficient implementation. We demonstrate this point by analyzing a benchmark case of asymmetric control where a single partner exercises complete control under the status quo partnership. We show that two-person partnerships cannot be dissolved efficiently with any incentive compatible, individually rational mechanism, regardless of the ownership structure, but that this impossibility result can be reversed if the number of partners is sufficiently large. We also show that equal-shares partnerships are not generally the easiest to dissolve when the distribution of control is asymmetric.

Item Type: Article
Official URL: http://www.elsevier.com/wps/find/journaldescriptio...
Additional Information: © 2007 Elsevier
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships; Contracts and Reputation; Networks
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 22 Jul 2011 15:45
URL: http://eprints.lse.ac.uk/37551/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only