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We study asymmetric partnerships and show that efficient dissolution is possible if critical types (where participation constraints bind) are equal. Ownership structures guaranteeing equal critical types always exist, but can be extremely unequal.
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When the buyer's utility is non-linear in type, revenue-maximizing mechanisms for multiple goods may be random. This happens when the allocation rule obtained via pointwise optimization is not incentive compatible, which is possible even with strictly increasing virtual utilities.
Persistent link: https://www.econbiz.de/10005269750