Common ownership is based on the idea that every asset is set for auction, and cannot be „protected“ as property. Its “Texas shootout” like auction mechanism foresees that each person submits a bid for the value of an asset, with the highest bid winning. The winner gets ownership of the asset but must buy out the share of the other bidder at the average of the two prices. The consequence is, that a bidder has no incentive to raise prices artificially because the price raiser would then need to pay a higher price.
Proponents: Eric Posner, Glen Weyl
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|Reason for intervention