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Discouraging Rivals: Managerial Rent-Seeking and Economic Inefficiencies

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  • Edlin, Aaron S
  • Stiglitz, Joseph E

Abstract

Managerial theories of the firm have a long and controversial history, beginning perhaps with Adolf A. Berle, Jr. and Gardiner C. Means’s classic (1932) study. Such theories postulated that managers had considerable discretion running corporations and exercised it to pursue objectives other than maximizing shareholder market value.
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  • Edlin, Aaron S & Stiglitz, Joseph E, 1995. "Discouraging Rivals: Managerial Rent-Seeking and Economic Inefficiencies," American Economic Review, American Economic Association, vol. 85(5), pages 1301-1312, December.
    • Handle: RePEc:aea:aecrev:v:85:y:1995:i:5:p:1301-12
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    1. Bagwell, Laurie Simon & Zechner, Josef, 1993. "Influence Costs and Capital Structure," Journal of Finance, American Finance Association, vol. 48(3), pages 975-1008, July.
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