Ownership Rights Irrelevant for Highly Interdependent Businesses, Boosting Investment Incentives
In this article, it's explored how ownership rights affect investments when companies work closely together. They found that in highly interdependent production relationships, who initially owns what doesn't really matter. This is different from a previous study, which suggested ownership should be structured to minimize inefficiencies and assets given to the better investor. The key difference is in how they handle what happens if no agreement is reached. Here, assets could actually discourage investing, showing that ownership isn't always a clear incentive in such situations.