Uncharted Rights, Trade Execution, and Firm Boundaries: Delegating Quantum Computing

30 Pages Posted: 20 Sep 2023

See all articles by Mostafa Aghasian

Mostafa Aghasian

Université Paris Dauphine - PSL Research University

Tanaz Moradi

Université Paris-Dauphine, PSL Research University

Date Written: August 28, 2023

Abstract

We consider a dynamic model for the delegation of uncharted rights to private firms in which the agents produce homogenous goods and trade them in an exogenous market. The agents have homogenous production technology, there are no transfers, and the principal rearranges rights at no cost, the only distinction point is the utilization of a trading technology to execute trades optimally in the exogenous market. We apply our setting to revisit the theory of public and private partnership and the firm boundaries when the goal is to maximize the rights’ value in interaction with the exogenous market. We augment the basic model with information asymmetry and moral hazards and propose reference points to the residual rights as a potential method to control these agency problems.

Keywords: Incomplete contracts, trade execution, transaction costs, residual rights, competition structure

JEL Classification: D23, D40, D86, P14

Suggested Citation

Aghasian, Mostafa and Moradi, Tanaz, Uncharted Rights, Trade Execution, and Firm Boundaries: Delegating Quantum Computing (August 28, 2023). Université Paris-Dauphine Research Paper No. 4554100, Available at SSRN: https://ssrn.com/abstract=4554100 or http://dx.doi.org/10.2139/ssrn.4554100

Mostafa Aghasian (Contact Author)

Université Paris Dauphine - PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris cedex 16, 75775
France

Tanaz Moradi

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris, 75016
France

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