Efficiency in partnerships

We provide the necessary and sufficient condition for a partnership to be able to sustain efficiency when the output is stochastic. When limited liability is imposed, we show that only the level of the average liability of the partnership is important; the individual levels of liability are irrelevant. However, the allocation of the total liability among the partners is crucial when additional conditions such as neutrality or individual rationality are imposed.

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Year of publication:	1991
Authors:	Legros, Patrick ; Matsushima, Hitoshi
Institutions:	Solvay Brussels School of Economics and Management, Université Libre de Bruxelles

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Series:	ULB Institutional Repository.
Type of publication:	Book / Working Paper
Notes:	Published in: Journal of Economic Theory (1991) v.55 n° 2,p.296-322
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008590182