INTRA-GROUP TRANSFERS AND GROUP FORMATION

Dyuti Banerjee and Anupama Sethi

No 24/08, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: In this paper we consider different forms of intra-group transfers and the resulting type of group formation. We introduce the concept of partial joint liability and revenue sharing and show that this form of intra-group transfer may result in heterogeneous group formation. Its uniqueness is established by the fact that other transfer schemes always result in homogenous group formation.

Keywords: Heterogeneous group formation; partial joint liability and revenue sharing (search for similar items in EconPapers)
JEL-codes: O12 O16 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2008-08-03
New Economics Papers: this item is included in nep-cdm, nep-gth, nep-mfd, nep-net and nep-soc
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