Electronic Resource
Oxford, UK
:
Blackwell Publishing Ltd
Kyklos
40 (1987), S. 0
ISSN:
1467-6435
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Sociology
,
Economics
Notes:
The analysis of general risk-sharing systems shows that profit-sharing represents a special case of the more general systems. General risk-sharing systems are more efficient than profit-sharing systems in that they permit contracting parties to exclude or treat differently certain types of risk, especially those which are endogenous to the firm and its management and therefore subject to moral hazard. Most important, general risk-sharing systems make it possible to exclude the returns from entrepreneurial risk-taking from share arrangements with workers. This feature makes general risk-taking consistent with the efficient operation of dynamic SCHUMPETERian market economies. Risk-sharing systems can also be used to increase the efficiency of contracts between parties other than employers and employees and they are most likely to raise welfare when one of the contracting parties is the government.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1467-6435.1987.tb02670.x
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