Beviá C., and L. Corchón
Mathematical Social Sciences – 57, (2009), 143-154
Keywords: Cooperative Production, Sharing Rules, Efficiency
Abstract: 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 Nash equilibrium yields efficient allocations, the production function displays constant returns to scale, a case in which cooperation in production is useless.