We characterize the sharing rule for which a contribution mechanism achieves efficiency in a cooperative production setting when agents are heterogeneous. The sharing rule bears no resemblance to those considered by the previous literature. We also show for a large class of sharing rules that if...

This paper studies economies where agents exchange indivisible goods and money. Agents have potential use for all indivisible goods and the indivisible goods are differentiated. We assume that agents have quasi-linear utilities in money, have sufficient money endowments to afford any group of...

This paper surveys selectively several contributions to the understanding of how cooperatives may cope with the interplay between meritocracy and efficiency when public decisions are taking by voting and the supply of labor is freely decided by each member. This outlines the main trade-off faced...