Notice of RetractionA research on the the efficiency of partnership

Abstract

As an ancient governance model, partnership becomes a unique scene in human-capital-intensive industries, breaking the monopoly position of corporate system in the governance models of enterprises. This paper reviews the disputes over the effectiveness of partnership. Some scholars propose that, from the perspective of information economics, team production and unobservable input in corporate system lead to the existence of non-efficiency behaviors-free rider problem. Other scholars speak in defense of the efficiency of partnership. When the professional team production is not easy to supervise, partnership is an effective governance model. As long as the partners bear unlimited liability, partnership can achieve approximate efficiency by a simple pooling strategy. Even if the partners bear limited liability, as long as co-supervision exists, efficiency of partnership is still achievable. Finally, a brief conclusion will be put forward.