@article{2dd43ed98fcf49e69ef029f9334d169c,
title = "Partnerships, lemons, and efficient trade",
abstract = "We analyze the possibility of efficient trade with informationally interdependent valuations and with a dispersed ownership. A main role is played by the effects of adverse selection on incentive payments and budget constraints. Variations in the degree of interdependence directly influence the incentive payments and ultimately lead to a tightening or relaxation of the budget constraint, thus affecting the ability to achieve efficient trade. We derive precise possibility conditions for efficient trade, and we offer a framework in which the interplay of insights previously obtained by Akerlof (Quart. J. Econom. 89 (1970) 488), Myerson and Satterthwaite (J. Econom. Theory 28 (1983) 265), and Cramton et al. (Econometrica 55 (1987) 615) can be analyzed. In addition, we discuss to what extent possibility results previously obtained for private values environments can be generalized.",
keywords = "Efficient trade, Lemons, Partnerships",
author = "Karsten Fieseler and Thomas Kittsteiner and Benny Moldovanu",
note = "Funding Information: We wish to thank the German Science Foundation for financial help through SFB 504 and GK {\textquoteleft}{\textquoteleft}Finanz-und Guetermaerkte{\textquoteright}{\textquoteright} at the University of Mannheim. We have greatly benefited from the comments made by an associated editor and by two anonymous referees. We are also grateful to Preston McAfee, Thomas Gresik, J{\"o}rg Nikutta, Phil Reny and seminar participants at Bonn, Gerzensee, Mannheim, University College London, and Tilburg for helpful remarks.",
year = "2003",
month = dec,
doi = "10.1016/S0022-0531(03)00109-1",
language = "אנגלית",
volume = "113",
pages = "223--234",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
number = "2",
}