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Title

Cooperative Production and Efficiency

AuthorsBeviá, Carmen; Corchón, Luis C.
KeywordsCooperative production
Sharing rules
Efficiency
Issue Date23-Apr-2007
SeriesUFAE and IAE Working Papers
696.07
AbstractWe characterize the sharing rule for which a contribution mechanism achieves efficiency in a cooperative production setting when agents are heterogeneous. The sharing rule bears no resemblance to those considered by the previous literature. We also show for a large class of sharing rules that if Nash equilibrium yields efficient allocations, the production function displays constant returns to scale, a case in which cooperation in production is useless.
URIhttp://hdl.handle.net/10261/1707
Appears in Collections:(IAE) Informes y documentos de trabajo
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