dc.contributor.author | Hvide, Hans K. | |
dc.date.accessioned | 2006-07-13T18:36:38Z | |
dc.date.available | 2006-07-13T18:36:38Z | |
dc.date.issued | 2001 | |
dc.identifier.issn | 1500-4066 | |
dc.identifier.uri | http://hdl.handle.net/11250/163635 | |
dc.description.abstract | Holmström (1982) showed that free-riding is inevitable in partnerships where inputs are substitutes. Legros & Matthews (1993) and Vislie (1994) showed that when inputs are strict complements (Leontief technology), free-riding can be avoided with a linear sharing rule. This paper considers the robustness and some extensions of the positive result of LMV. First, I show that LMV’s result is not robust to the introduction of participation constraints and limited liability. However, I construct a novel rule that mitigates that problem. Second, I perturb the (deterministic) model of LMV. It turns out that free-riding is avoidable with noise added to joint output, while free-riding is inevitable when noise is added to individual productivity. | en |
dc.format.extent | 73766 bytes | |
dc.format.mimetype | application/pdf | |
dc.language.iso | eng | en |
dc.publisher | Norwegian School of Economics and Business Administration. Department of Finance and Management Science | en |
dc.relation.ispartofseries | Discussion paper | en |
dc.relation.ispartofseries | 2001:2 | en |
dc.subject | free-riding | en |
dc.subject | leontief technology | en |
dc.subject | partnerships | en |
dc.subject | stochastic | en |
dc.subject | teams | en |
dc.title | Some comments on free-riding in leontief partnerships | en |
dc.type | Working paper | en |