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Reorganizing a partnership efficiently
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Reorganizing a partnership efficiently

Eric S. Chou, Meng-Yu LiangCheng-Tai Wu
Review of Economic Design
2021

摘要

Auction Mechanism design Partnership dissolution Economics Econometrics and Finance (all)
We modify the partnership dissolution model pioneered by Cramton et al. (Econometrica 55:615–632, 1987) to consider the possibility that each partner has an optimal scale and hence values only a fraction of an object, called a block. To achieve efficiency, a partnership should be reorganized so that multiple blocks are allocated one-to-one to the partners who have the highest valuations. The set of initial ownership distributions under which efficient reorganization can be achieved is non-convex. A condition reveals the relationship between the possibility of efficient reorganization for any given partnership and three characteristics that it entails: the number of blocks available (K), the total number of partners (N), and the number of partners who own up to a block (S). Given that K and N are fixed, efficiency can be achieved if and only if S is sufficiently low. In addition, given that N and S are fixed, efficiency can be achieved if and only if K is sufficiently high.

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