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- W3125924898 abstract "Abstract We reconsider the property rights approach to the theory of the firm based on incomplete contracts. We explore the implications of different degrees of relationship-specificity when there are two parties, A and B , who can make investments in physical capital (instead of human capital). If relationship-specificity is exogenously given, it turns out that joint asset ownership can be optimal only if the degree of relationship-specificity is sufficiently small. If relationship-specificity can be freely chosen and if party A ’s investments are more productive, then the parties deliberately choose a strictly positive level of relationship-specificity and they always agree on sole ownership by party A ." @default.
- W3125924898 created "2021-02-01" @default.
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- W3125924898 date "2013-06-01" @default.
- W3125924898 modified "2023-09-26" @default.
- W3125924898 title "Investments in physical capital, relationship-specificity, and the property rights approach" @default.
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- W3125924898 doi "https://doi.org/10.1016/j.econlet.2013.03.017" @default.
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