On Some Auction Rules for Amicable Divorce in Equal Share Partnerships
14 Pages Posted: 23 May 2005
Date Written: February 2005
Partnerships form and dissolve. Dissolution often requires a change in property rights, from joint to single ownership, in the hands of one of the partners. This calls for a dissolution rule that assigns full property rights to the partner who makes the best use of these assets, and assures fair compensation of those who give up their ownership rights. The present paper analyzes two simple auction rules to solve these problems.
Keywords: Auctions, partnership dissolution, divorce rules, inheritance rules, mechanism design, revenue equivalence theorem
JEL Classification: D44
Suggested Citation: Suggested Citation