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
For further interest on this topic:
| Reason for intervention | allocative inefficienciy, economic stagnation, inequality, monopolization in digital economy |
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| Institutional impact | transformation of economy, transformation of property regime, transformation of taxation system |
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