Partnership dissolution with interdependent values
Philippe Jehiel () and
Ady Pauzner
Post-Print from HAL
Abstract:
We study partnership dissolution when valuations are interdependent and only one party is informed. In contrast with the case of private values (Cramton, Gibbons, and Klemperer, 1987), in which efficient trade is feasible whenever initial shares are about equal, there exists a wide class of situations in which full efficiency cannot be reached. In these cases, (i) the subsidy required to restore the first best is minimal when the entire ownership is allocated initially to one of the parties, and (ii) ruling out external subsidies, the second-best welfare is maximized when one of the parties initially has full ownership.
Date: 2006-03
References: Add references at CitEc
Citations: View citations in EconPapers (22)
Published in RAND Journal of Economics, 2006, 37 (1), pp.1-22. ⟨10.1111/j.1756-2171.2006.tb00001.x⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Partnership dissolution with interdependent values (2006) 
Working Paper: Partnership dissolution with interdependent values 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754170
DOI: 10.1111/j.1756-2171.2006.tb00001.x
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().