Cooperative production and efficiency

Carmen Bevia () and Luis C. Corchon ()

Economics Working Papers from Universidad Carlos III, Departamento de Economía

Abstract: We 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.

New Economics Papers: this item is included in nep-bec, nep-gth and nep-mic
Date: 2007-04

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Related works:
Working Paper: Cooperative Production and Efficiency (2007)
Journal Article: Cooperative production and efficiency (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:cte:werepe:we070502

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