Joint Ownership of Production Projects as a Commitment Device against Interest Groups - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue Journal of Institutional and Theoretical Economics Année : 2020

Joint Ownership of Production Projects as a Commitment Device against Interest Groups

Résumé

This paper investigates an unexplored rationale for joint ownership of a production project. We model projects with autocorrelated productivity shocks as creating an option value of investing over time so that later investments benefit from the information revealed by the realization of earlier investments. However, internal and external interest groups may pressurize owners into paying out early revenues. Joint ownership provides a commitment mechanism against them, thereby enabling more efficient levels of investment. The Business Environment and Enterprises Performance survey data corroborate the model's prediction that organizations under interest-group lobbying pressure are more likely to choose joint ownership.
Fichier non déposé

Dates et versions

hal-02794373 , version 1 (05-06-2020)

Identifiants

Citer

Nicoletta Berardi, Paul Seabright. Joint Ownership of Production Projects as a Commitment Device against Interest Groups. Journal of Institutional and Theoretical Economics, 2020, 176 (3), pp.572-594. ⟨10.1628/jite-2020-0027⟩. ⟨hal-02794373⟩
13 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More