Ownership shares and choosing the best leader

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 191
Issue: C
Pages: 482-500

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines production by two unequal partners and asks if there exist agreed upon ownership shares that generate the joint payoff maximizing efforts. Given the inherent complementarity, we show that for given shares, joint payoff is greater in a sequential rather than a simultaneous effort game. Also, joint payoff is typically higher when the more productive partner exerts effort late and when shares differ by less than productivity. Yet, each partner desires to exert effort late creating an unavoidable chicken game. Given that the partners remain owners with shares, this creates demand for a coordinator (not a full principal) to establish optimizing shares and the leader.

Technical Details

RePEc Handle
repec:eee:jeborg:v:191:y:2021:i:c:p:482-500
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26