Article ID Journal Published Year Pages File Type
972091 Mathematical Social Sciences 2009 12 Pages PDF
Abstract

We characterize the sharing rule for which a contribution mechanism achieves efficiency in a cooperative production setting when agents are heterogeneous. This rule differs from the one obtained by Sen for the case of identical agents. We also show for a large class of sharing rules that if Nash equilibrium yields efficient allocations, the production function displays constant returns to scale, a case in which cooperation in production is useless.

Related Topics
Physical Sciences and Engineering Mathematics Applied Mathematics
Authors
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