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Partnership Dissolution: Information and Efficiency+

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  • Yuri Khoroshilov

    (Telfer School of Management, University of Ottawa, Ottawa, Ontario K1N 6N5, Canada)

Abstract

This paper analyses the efficiency of the Texas shootout and ½-auction partnership dissolution mechanisms when one of the partners has a chance to learn the other partner’s valuation. It shows that the efficiency of the Texas shootout mechanism positively depends on the probability of one partner successfully learning the other’s valuation while for the ½-auction mechanism such a relationship is not monotonic: The outcome is efficient when the probability of observing the other partner’s signal is zero or one, but is inefficient for all intermediate values.

Suggested Citation

  • Yuri Khoroshilov, 2018. "Partnership Dissolution: Information and Efficiency+," Decision Analysis, INFORMS, vol. 15(3), pages 133-138, September.
    • Handle: RePEc:inm:ordeca:v:15:y:2018:i:3:p:133-138
    DOI: 10.1287/deca.2018.0367
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    References listed on IDEAS

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    Cited by:

    1. Nicola Dimitri, 2021. "The “Italian Football Federation Auction” for Co-ownership Resolution," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(2), pages 275-285, March.
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    3. Vicki M. Bier & Simon French, 2020. "From the Editors: Decision Analysis Focus and Trends," Decision Analysis, INFORMS, vol. 17(1), pages 1-8, March.

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