The John M. Olin Center

Paper Abstract

754. Claudia M. Landeo & Kathryn E. Spier, Shotgun Mechanisms for Common-Value Partnerships:  The Unassigned-Offeror Problem, 09/2013; subsequently published in Economics Letters, Vol. 121 (2013).

Abstract: Shotguns clauses are commonly included in the business agreements of partnerships and limited liability companies (LLCs), but the role of offeror typically remains unassigned. In a common-value, one-sided asymmetric information setting, unequal and inefficient outcomes occur with an unassigned offeror. Experimental results are aligned with our theory.

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