Optimal ownership in joint ventures withcontributions of asymmetric partners

This paper faces two questions concerning Joint Ventures (JV) agreements. First, we studyhow the partners contribution affect the creation and the profit sharing of a JV when partners'effort is not observable. Then, we see whether such agreements are easier to enforce when thedecision on JV profit sharing among partners is either delegated to the independent JVmanagement (Management Sharing) or jointly taken by partners (Coordinated Sharing). Wefind that the firm whose effort has a higher impact on the JV's profits should have a largerprofit shares. Moreover, a Management sharing ensures, at least in some cases, a wider rangeof self-enforceable JV agreements.....