A Theory of Partnerships∗

نویسندگان

  • Jonathan Levin
  • Steven Tadelis
چکیده

We compare the costs and benefits of partnerships relative to the corporate form of organization. We show that organizing as a partnership can be desirable in humancapital intensive industries where product quality is hard to observe. The theory explains the relative scarcity of partnerships outside of professional service industries such as law, accounting, medicine, investment banking, architecture, advertising, and consulting. It also helps to explain features of partnerships in these industries such as the up-or-out system and motives for profit-sharing, and why firms in some professional service industries have been converting to investor-ownership.

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تاریخ انتشار 2002