Dissolving a partnership securely

B-Tier
Journal: Economic Theory
Year: 2020
Volume: 69
Issue: 2
Pages: 415-434

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Abstract We characterize security strategies and payoffs for three mechanisms for dissolving partnerships: the Texas Shoot-Out, the $$K+1$$K+1 auction, and the compensation auction. A security strategy maximizes a participant’s minimum payoff, and represents a natural starting point for analysis when a participant is either uncertain of the environment or uncertain of whether his rivals will play equilibrium. For the compensation auction, a dynamic dissolution mechanism, we introduce the notion of a perfect security strategy. Such a strategy maximizes a participant’s minimum payoff along every path of play. We show that while a player has many security strategies in the compensation auction, he has a unique perfect security strategy.

Technical Details

RePEc Handle
repec:spr:joecth:v:69:y:2020:i:2:d:10.1007_s00199-019-01177-9
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29