Cooperative Production and Efficiency Articles uri icon

publication date

  • March 2009

start page

  • 143

end page

  • 154


  • 2


  • 57

International Standard Serial Number (ISSN)

  • 0165-4896

Electronic International Standard Serial Number (EISSN)

  • 1879-3118


  • We characterize the sharing rule for which a contribution mechanism achieves efficiency in a cooperative production setting when agents are heterogeneous. This rule differs from the one obtained by Sen for the case of identical agents. We also show for a large class of sharing rules that if Nash equilibrium yields efficient allocations, the production function displays constant returns to scale, a case in which cooperation in production is useless.