TY  - JOUR
A1  - Müller, Daniel
A1  - Schmitz, Patrick W.
T1  - Transaction costs and the property rights approach to the theory of the firm
T2  - European Economic Review
N2  - The standard property rights approach is focused on ex ante investment incentives, while there are no transaction costs that might restrain ex post negotiations. We explore the implications of such transaction costs. Prominent conclusions of the property rights theory may be overturned: A party may have stronger investment incentives when a non investing party is the owner, and joint ownership can be the uniquely optimal ownership structure. Intuitively, an ownership structure that is unattractive in the standard model may now be desirable, because it implies large gains from trade, such that the parties are more inclined to incur the transaction costs.
KW  - Incomplete contracts
KW  - Property rights approach
KW  - Vertical integration
KW  - Joint ownership
KW  - Transaction costs
Y1  - 2016
UR  - https://opus.bibliothek.uni-wuerzburg.de/frontdoor/index/index/docId/18804
UR  - https://nbn-resolving.org/urn:nbn:de:bvb:20-opus-188042
VL  - 87
ER  -