In the property rights approach to theory of firm, ownership matters if parties have make partly relationship-specific investments, but would be irrelevant investments were completely relationship-specific. We show that negotiations after investment stage require transaction costs paid, then even when are While in standard model without there underinvestments compared first-best benchmark, our ...

During the last two centuries, property understood as an exclusive and unlimited dominion became common sense. Before, idea of a fiduciary relationship, which is still present in contemporary social constitutionalism, was closely linked to view that exercise freedom entails capacity shape those rights channel socioeconomic life. Today, new ways operationalise such approach must be found. This a...