New study reveals key to successful public-private partnerships for societal benefit
The article discusses how control rights should be allocated in partnerships that produce public goods. The best allocation depends on technology, how much the parties value the goods, and how pure the goods are. If the goods are very impure, the main investor should have control. If one party's investment is more important, they should have control even if the goods are not very impure. If both parties' investments are equally important and the goods are very impure, shared control is best with more going to the less interested party. If both investments are equally important and the goods are neither very pure nor very impure, the less interested party should have control. The findings can be applied to situations like schools and child custody.