Publication:
Efficient partnership dissolution under buy-sell clauses

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorFrutos, María Ángeles de
dc.contributor.authorKittsteiner, Thomas
dc.date.accessioned2012-08-01T10:20:14Z
dc.date.available2012-08-01T10:20:14Z
dc.date.issued2008
dc.description.abstractBuy-sell clauses are commonly used contractual provisions to determine the terms of dissolution of partnerships. Under them, one party offers a price for the partnership and the other party chooses whether to sell her share or buy her partner’s share at this price. We point out that the selection of the proposing partner is essential for the performance of the clause. Moreover, if partners negotiate for the advantage of being the chooser, then buy-sell clauses result in an ex post efficient outcome. Such endogenous selection is consistent with how buy-sell clauses are drafted in practice.
dc.description.sponsorshipWe have benefited from comments by Richard Brooks, Erik Eyster, Paul Klemperer,Wolfgang Köhler,Meg Meyer, Benny Moldovanu, Nicola Persico, Georges Siotis, Kathy Spier, anonymous referees, the editor, as well as participants at the Second Game TheoryWorld Congress in Marseille (July 2004) and at the Economic Design Conference in Mallorca (June 2004). The authors would like to thank Nuffield College, Oxford, for its hospitality and support during the preparation of this article. The first author’s research was supported by the Spanish Ministerio de Educacion (grant SEJ 2007-67436). Studying a sample of 297 two-parent U.S. joint ventures, Hauswald and Hege (2003) report that in 34% of them there was a buyout and in 20% there was either a liquidation or sale to a third party.
dc.description.statusPublicado
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationRAND Journal of Economics, 2008, vol. 39, nº 1, pp. 184-198
dc.identifier.doi10.1111/j.1756-2171.2008.00009.x
dc.identifier.issn0741-6261
dc.identifier.publicationfirstpage184
dc.identifier.publicationissue1
dc.identifier.publicationlastpage198
dc.identifier.publicationtitleRAND Journal of Economics
dc.identifier.publicationvolume39
dc.identifier.urihttps://hdl.handle.net/10016/15091
dc.language.isoeng
dc.publisherRAND/Wiley-Blacwell
dc.relation.publisherversionhttp://dx.doi.org/10.1111/j.1756-2171.2008.00009.x
dc.rights© 2008, RAND
dc.rights.accessRightsopen access
dc.subject.ecienciaEconomía
dc.subject.otherBuy-sell clauses
dc.subject.otherPartnerships
dc.titleEfficient partnership dissolution under buy-sell clauses
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
efficient_frutos_RJE_2008_ps.pdf
Size:
338.47 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DE - Artículos de Revistas
Economists Online