The property rights theory of production networks

• 成果类型: Article
• 署名作者: Balbuzanov, Ivan; Kotowski, Maciej H.
• 署名单位: University of Melbourne; University of Notre Dame
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE5413
• 发表日期: 2024-11-01
• 页码: 1619-1658
• 关键词: Property rights; production networks; top trading cycles; theory of the firm; C71; D23; D51; L14

摘要

This paper investigates the formation of production and trading networks in economies with general interdependencies and complex property rights. We argue that the right to exclude, a core tenet of property, grants asset owners local monopoly power that is amplified by an economy's endogenous production network. Our analysis generalizes the exclusion core, a cooperative solution concept based on the right to exclude, to markets with production. We identify sufficient (and essentially necessary) conditions for the nonemptiness of the exclusion core. Multisourcing and a bias toward shorter supply chains emerge in exclusion-core outcomes. As a methodological contribution, we generalize the top trading cycles algorithm to a production economy and we show that it identifies outcomes in an economy's exclusion core.