Template-Type: ReDIF-Paper 1.0
Title: On the Foundations of the Property Rights Theory of the Firm: Cooperative Investments and Message-Dependent Contracts
Author-Name: Andreas Roider
Author-Email: Andreas.Roider@wiwi.uni-bonn.de
Classification-JEL: D23, D82, L14, L22	
Keywords: Incomplete Contracts, Property Rights, Specific Investments
Abstract: The property-rights theory assumes that trade is non-contractible ex-ante and focusses exclusively on the allocation of property-rights. We derive
	foundations for this focus on property-rights by identifying scenarios where only one of the simple ownership structures is optimal even though trade is contractible.
	In these scenarios it is optimal: (1) not to sign a trade contract; (2a) to sign a partially enforced trade contract; (2b) such a combination of asset ownership and a
	trade contract might even achieve the first-best. For the purpose of identifying the optimal simple ownership structure, trade contracts can be neclected in scenarios
	(2a) and (2b).
Note: 
Length: 26
Creation-Date: 2000-10
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse12_2000.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse12_2000