Abstract

http://ssrn.com/abstract=957923
 
 

References (42)



 
 

Citations (6)



 


 



Entrepreneurship and the Division of Ownership in New Ventures


Dominique Demougin


EBS Universität für Wirtschaft und Recht - EBS Business School - Department of Governance & Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Oliver Fabel


Chair for International Personnel Management, Institute of Business Administration, Faculty of Economics and Business, University of Vienna


Journal of Economics & Management Strategy, Vol. 16, No. 1, pp. 111-128, Spring 2007

Abstract:     
The current study investigates a tripartite incentive contract between an innovator supplying an intellectual asset, a professional assigned to productive tasks, and a consulting firm specializing in matching ideas and professional skills. A rather simple pure tripartite partnership implements the consultant's expected profit maximum and maximizes the project's expected surplus. The liquidity-constrained professional is compensated by receiving a share of one half in the new venture. The consultant's and the innovator's shares reflect the relative value of search. However, the consultant's optimal search effort to find an appropriate production partner is inefficiently low.

Number of Pages in PDF File: 18

Accepted Paper Series


Date posted: January 18, 2007  

Suggested Citation

Demougin, Dominique and Fabel, Oliver, Entrepreneurship and the Division of Ownership in New Ventures. Journal of Economics & Management Strategy, Vol. 16, No. 1, pp. 111-128, Spring 2007. Available at SSRN: http://ssrn.com/abstract=957923 or http://dx.doi.org/10.1111/j.1530-9134.2006.00134.x

Contact Information

Dominique Demougin (Contact Author)
EBS Universität für Wirtschaft und Recht - EBS Business School - Department of Governance & Economics ( email )
International University Schloss Reichartshausen
Campus Wiesbaden, Soehnleinstrasse 8A
Wiesbaden, 65201
Germany
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Muenchen, 81679
Germany
Oliver Fabel
Chair for International Personnel Management, Institute of Business Administration, Faculty of Economics and Business, University of Vienna ( email )
Oskar-Morgenstern-Platz 1
Vienna, A1090
Austria
+43-1-4277-38161 (Phone)
HOME PAGE: http://ipersonal.univie.ac.at/index.php?id=home1
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