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This paper faces two questions concerning Joint Ventures (JV) agreements. First, the authors study how the partners' contribution affects the creation and the profit sharing of a JV when partners' effort is not observable. Then, they see whether such agreements are easier to enforce when the decision on JV profit sharing among partners is either delegated to the independent JV management (Management Sharing) or jointly taken by partners (Coordinated Sharing). They find that the firm whose effort has a higher impact on the JV's profits should have a larger profit shares. Moreover, a Management sharing ensures, at least in some cases, a wider range of self-enforceable JV agreements.
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