Renou, Ludovic (2006) Partnerships. Working Paper. University of Adelaide School of Economics Working Papers.

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Abstract

This paper analyzes the endogenous formation of a partnership as the trade-off between efficiency gains and a 'cost' associated with the partial loss of control over the decisions the partnership takes. For instance, by forming a monetary union, countries benefit from a more coordinated monetary policy. However, due to the partial loss of control over the union decision, the policy implemented might differ from the policy a member would have taken on their own. We interpret this possible difference as a cost. We notably show that individuals with 'similar' characteristics form a partnership, and the more diverse the characteristics, the smaller the partnership size.

Item Type:	Monograph (Working Paper)
Uncontrolled Keywords:	partnerships; coalitions; alliances; endogenous formation; efficiency gains; loss of control; divers
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics, Department of
Depositing User:	Jim Jamieson
Date Deposited:	07 Jan 2013 12:38
Last Modified:	07 Jan 2013 12:38
URI:	http://repository.essex.ac.uk/id/eprint/5015

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