Joint Ownership Solves Holdups in Asymmetric Information Deals
This study shows that when people have secrets about how well they may do something, it might be better for them to own things together instead of one person owning it all. This is because private knowledge can make it hard to agree fairly once the results are known. Usually, sharing ownership reduces the effort that each person puts in because they can't be sure of getting their fair share later. However, in situations where people know things the other doesn't, sharing might lead to better results than keeping everything separate. This goes against what many believed before, showing that joint ownership could sometimes be a clever choice to handle tricky situations where not everyone has the same information.