Discrete and Continuous Boundary Problems (Mathematics in

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Assume further that the productivity of any agent, i, is enhanced when he has access to certain physical assets, i, but is independent of other assets, When each of the agents owns some physical assets (and his information, ai), the first order condition for a typical agent is: [18] When the central coordinator owns all the physical assets, then agent i's first order condition is: Because the agent needs access to the coordination information, the second term in each equation is equal to zero, so the incentives for a typical agent do not change under alternative ownership structures.

Pages: 570

Publisher: Academic Press (February 11, 1964)

ISBN: 012065850X

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