When several apartments or offices belong to the same building there are many contractual formulas to arrange for service provision. Common use or production is often useful, because of economies of scale (heating), or because of the public-good-character of some services (lift, porter). Consider two solutions:

(a) organizing a neighbor cooperative;

(b) individual contracting with a specialized firm (often this is the constructor or the lender of the building). Is the second solution more or less probable when the neighbors are owners? Why?


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