TY - JOUR
T1 - Fragmentation in property
T2 - Towards a general model
AU - Schulz, Norbert
AU - Parisi, Francesco
AU - Depoorter, Ben
N1 - Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2002/12
Y1 - 2002/12
N2 - This paper develops a general model of anticommons fragmentation in property. Using several related examples, we consider the equilibria obtained under different scenarios. The various illustrations are later utilized to develop a model of fragmented property. The model reveals that the private incentives of excluders do not capture the external effects of their individual decisions. Our model suggests that the results of underutilization of joint property increase monotonically in both (a) the extent of fragmentation and (b) the forgone synergies and complementarities between the property fragments. We explore some important implications for the institutional responses to issues of property fragmentation. (JEL: K 10, K 11, K 19, D 62, D 70).
AB - This paper develops a general model of anticommons fragmentation in property. Using several related examples, we consider the equilibria obtained under different scenarios. The various illustrations are later utilized to develop a model of fragmented property. The model reveals that the private incentives of excluders do not capture the external effects of their individual decisions. Our model suggests that the results of underutilization of joint property increase monotonically in both (a) the extent of fragmentation and (b) the forgone synergies and complementarities between the property fragments. We explore some important implications for the institutional responses to issues of property fragmentation. (JEL: K 10, K 11, K 19, D 62, D 70).
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U2 - 10.1628/0932456022975196
DO - 10.1628/0932456022975196
M3 - Article
AN - SCOPUS:0036978674
VL - 158
SP - 594
EP - 613
JO - Journal of Institutional and Theoretical Economics
JF - Journal of Institutional and Theoretical Economics
SN - 0932-4569
IS - 4
ER -