IDEAS home Printed from https://ideas.repec.org/p/ecm/ausm04/196.html
   My bibliography  Save this paper

Mixed sharing rules

Author

Listed:
  • Roger Hartley
  • Richard Cornes

Abstract

It is wellknown that a group of individuals contributing to a joint production process with diminishing returns will tend, in equilibrium, to put in too little effort if shares of the output are exogenous, and will put in too much effort if their shares are proportional to their inputs. We consider 'mixed' sharing rules, in which some proportion of the output will be shared exogenously, and the rest proportionally. We examine the efficiency properties of such rules, compare them with serial sharing rules, and suggest a sharing game whose noncooperative equilibrium is, in certain circumstances, Pareto efficient

Suggested Citation

  • Roger Hartley & Richard Cornes, 2004. "Mixed sharing rules," Econometric Society 2004 Australasian Meetings 196, Econometric Society.
    • Handle: RePEc:ecm:ausm04:196
    as

    Download full text from publisher

    File URL: http://repec.org/esAUSM04/up.29210.1077802256.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cauley, Jon & Cornes, Richard & Sandler, Todd, 1999. "Stakeholder incentives and reforms in China's state-owned enterprises: A common-property theory," China Economic Review, Elsevier, vol. 10(2), pages 191-206.
    2. Watts, Alison, 1996. "On the Uniqueness of Equilibrium in Cournot Oligopoly and Other Games," Games and Economic Behavior, Elsevier, vol. 13(2), pages 269-285, April.
    3. Cornes, Richard & Sandler, Todd, 1983. "On Commons and Tragedies," American Economic Review, American Economic Association, vol. 73(4), pages 787-792, September.
    4. Richard Cornes & Roger Hartley, 2002. "Dissipation in Rent-seeking Contests with Entry Costs," Game Theory and Information 0211001, University Library of Munich, Germany.
    5. Corchon, Luis C. & Puy, M. Socorro, 1998. "Individual rationality and voting in cooperative production," Economics Letters, Elsevier, vol. 59(1), pages 83-90, April.
    6. Amartya K. Sen, 1966. "Labour Allocation in a Cooperative Enterprise," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 33(4), pages 361-371.
    7. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, January.
    8. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    9. Varian, Hal R., 1974. "Equity, envy, and efficiency," Journal of Economic Theory, Elsevier, vol. 9(1), pages 63-91, September.
    10. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-1037, September.
    11. Watts, Alison, 2002. "Uniqueness of equilibrium in cost sharing games," Journal of Mathematical Economics, Elsevier, vol. 37(1), pages 47-70, February.
    12. Champsaur, Paul & Laroque, Guy, 1981. "Fair allocations in large economies," Journal of Economic Theory, Elsevier, vol. 25(2), pages 269-282, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. R Cornes & R Hartley, 2005. "The Geometry of Aggregative Games," Economics Discussion Paper Series 0514, Economics, The University of Manchester.
    2. Wolfgang Buchholz & Wolfgang Peters, 2007. "Justifying the Lindahl solution as an outcome of fair cooperation," Public Choice, Springer, vol. 133(1), pages 157-169, October.
    3. H. Spencer Banzhaf & Yaqin Liu & Martin Smith & Frank Asche, 2019. "Non-Parametric Tests of the Tragedy of the Commons," NBER Working Papers 26398, National Bureau of Economic Research, Inc.
    4. Quérou, Nicolas & Tomini, Agnes & Costello, Christopher, 2022. "Limited‐tenure concessions for collective goods," Journal of Economic Dynamics and Control, Elsevier, vol. 143(C).
    5. Banzhaf, H. Spencer & Liu, Yaqin & Smith, Martin D. & Asche, Frank, 2024. "Non-parametric tests of behavior in the commons," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 521-536.
    6. Hervé Moulin, 2008. "The price of anarchy of serial, average and incremental cost sharing," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(3), pages 379-405, September.
    7. Cornes Richard & Sandler Todd, 2000. "Pareto-Improving Redistribution and Pure Public Goods," German Economic Review, De Gruyter, vol. 1(2), pages 169-186, May.
    8. Hikaru Ogawa, 2010. "Fiscal Competition among Regional Governments - Tax Competition, Expenditure Competition and Externalities -," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(1), pages 1-30, February.
    9. Wolfgang Buchholz & Wolfgang Peters, 2001. "The overprovision anomaly of private public good supply," Journal of Economics, Springer, vol. 74(1), pages 63-78, February.
    10. Friedman, Eric & Moulin, Herve, 1999. "Three Methods to Share Joint Costs or Surplus," Journal of Economic Theory, Elsevier, vol. 87(2), pages 275-312, August.
    11. Laura Marsiliani & Thomas I. Renstroem, 2010. "Privately provided public goods in a dynamic economy," Department of Economics Working Papers 2010_02, Durham University, Department of Economics.
    12. Torregrosa, Ramón J., 2018. "On the endogenous determination of the degree of meritocracy in large cooperatives," Economics Letters, Elsevier, vol. 171(C), pages 41-45.
    13. Gorkem Celik & Dongsoo Shin & Roland Strausz, 2021. "Public good overprovision by a manipulative provider," RAND Journal of Economics, RAND Corporation, vol. 52(2), pages 314-333, June.
    14. Bandyopadhyay, Subhayu & Sandler, Todd, 2021. "Counterterrorism policy: Spillovers, regime solidity, and corner solutions," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 811-827.
    15. Hines Jr., James R., 2000. "What is benefit taxation?," Journal of Public Economics, Elsevier, vol. 75(3), pages 483-492, March.
    16. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2011. "Matching as a Cure for Underprovision of Voluntary Public Good Supply: Analysis and an Example," ANU Working Papers in Economics and Econometrics 2011-541, Australian National University, College of Business and Economics, School of Economics.
    17. Wolfgang Buchholz & Richard Cornes & Dirk T. G. Rübbelke, 2009. "Existence and Warr Neutrality for Matching Equilibria in a Public Good Economy: An Aggregative Game Approach," CESifo Working Paper Series 2884, CESifo.
    18. Wolfgang Buchholz & Wolfgang Peters, 2008. "Equal sacrifice and fair burden-sharing in a public goods economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(4), pages 415-429, August.
    19. Ferrari, Giorgio & Riedel, Frank & Steg, Jan-Henrik, 2016. "Continuous-Time Public Good Contribution under Uncertainty," Center for Mathematical Economics Working Papers 485, Center for Mathematical Economics, Bielefeld University.
    20. Etilé, Fabrice & Teyssier, Sabrina, 2013. "Corporate social responsibility and the economics of consumer social responsibility," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 94(2).

    More about this item

    Keywords

    surplus sharing; cost sharing; aggregative games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:ausm04:196. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.