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- W3121686581 abstract "This paper explains a frequent coexistence of deficient property rights and heavy bureaucracies. We suggest that in environments with insecure ownership bureaucracies substitute for enforceable contracts. We study irreversible investment in an asset, and model the property allocation as a game between a ruler and investors. Since the ex ante ownership allocation is not enforceable, an ex post share increase is optimal for the ruler. His share adjustment is costly; the heavier the bureaucratic machine the higher his cost. Bureaucracy improves investment incentives by reducing the wedge between the ruler’s ex ante and ex post equilibrium shares." @default.
- W3121686581 created "2021-02-01" @default.
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- W3121686581 date "2000-01-01" @default.
- W3121686581 modified "2023-09-27" @default.
- W3121686581 title "Contract Incompleteness, Contractual Enforcement and Bureaucracies" @default.
- W3121686581 hasPublicationYear "2000" @default.
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