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Volkswagen vs. Porsche. A Power-Index Analysis

Author

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  • Roland Kirstein

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

After Porsche SE took over Volkswagen AG, its supervisory board consists of three groups: The Porsche shareholders hold 6 seats, while the 324,000 Volkswagen employees and the 12,000 Porsche employees will be represented by 3 delegates each. This paper perceives each of these three groups as unitary players and presents a power-index analysis of this supervisory board. It shows that, unless the Porsche employees are made completely powerless, Porsche and VW employees will have identical power regardless of the actual distribution of seats on the employees' side. This analysis demonstrates that the request of the Volkswagen employees (for more seats than the Porsche employees in the future supervisory board) is unfounded.

Suggested Citation

  • Roland Kirstein, 2009. "Volkswagen vs. Porsche. A Power-Index Analysis," FEMM Working Papers 09007, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:09007
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    References listed on IDEAS

    as
    1. Shapley, L. S. & Shubik, Martin, 1954. "A Method for Evaluating the Distribution of Power in a Committee System," American Political Science Review, Cambridge University Press, vol. 48(3), pages 787-792, September.
    2. Bernard Steunenberg & Dieter Schmidtchen & Christian Koboldt, 1999. "Strategic Power in the European Union," Journal of Theoretical Politics, , vol. 11(3), pages 339-366, July.
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    Cited by:

    1. Roland Kirstein & Matthias Peiss, 2013. "Quantitative Machtkonzepte in der Ökonomik," FEMM Working Papers 130004, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Balsmeier, Benjamin & Bermig, Andreas & Dilger, Alexander, 2013. "Corporate governance and employee power in the boardroom: An applied game theoretic analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 51-74.

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    More about this item

    Keywords

    Banzhaf power-index; supervisory board; societas europeae;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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