A theory of joint asset ownership
نویسندگان
چکیده
I offer a theory of joint ownership by extending the standard property right theory of the firm to situations where parties can endogenously choose the degree of specificity of their investments (i.e., both the type of investment—specific and general—and the level of each). When specific and general investments are complements, the standard GHM results are obtained and joint ownership is suboptimal. When specific and general investments are substitutes, joint ownership is optimal as long as trade takes place within the relationship. Joint ownership provides stronger incentives to make specific investments than any other forms of ownership by discouraging general investments.
منابع مشابه
Joint ownership and alienability
Most legal traditions view individual ownership as paradigmatic. Yet most property is jointly owned. This paper analyzes how joint ownership affects alienability by focusing on two fundamental issues raised by joint ownership—the nature of the class of those who may benefit from a joint asset and the nature of the process for making decisions about such an asset. I identify four possible ways t...
متن کاملOwnership and Control in Joint Ventures: Theory and Evidence
Joint ventures, a particularly popular form of corporate cooperation, exhibit ownership patterns that are clustered around equal shareholdings for a wide variety of parent firms. In this paper, we investigate why 50-50 or “50 plus one share" equity allocations should be so prevalent. In our model, parent firms trade off control benefits and costs with incentives for resource contributions in th...
متن کاملRenegotiation of Asset Ownership
Asset reallocation is often observed in disintegration, divestures, and dissolution of business firms. Yet the property right theory of the firm assumes that asset ownership cannot be renegotiated when business relationships are severed. This paper shows that this assumption is quite innocuous: allowing renegotiation of asset ownership has essentially no effects on the
متن کاملAnalysis the Relationship between Value Added Tax Performance with Inflation, Income Distribution and Government Capital Asset Ownership in Iranian Provinces
Value added tax has been focus on many countries in recent decades due to the low tax base consumption, low cost on identification, collection and transfer on tax burden to the end consumer in the economy. Therefore, its full implementation in Iran can improve the efficiency on the tax system. In this regard, policymakers' awareness on the effects on consolidated, distributive and allocative va...
متن کاملDeterminants of Asset Ownership: a Study of the Carpentry Trade
We use a data set describing ownership of productive assets in the carpentry trade to evaluate several factors influencing the allocation of asset ownership between an employer and his employees. The findings suggest that the allocation involves a tradeoff between two incentive effects influencing how the employee uses the asset and what the employer decides it should be used for. In particular...
متن کامل