IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v37y1981i3p473-486.html
   My bibliography  Save this article

The firm's objective function as a collective choice problem

Author

Listed:
  • Frank Milne

Abstract

In this paper I have tried to make the simple point that the shareholder's problem is a collective choice problem. Because of Arrow's Possibility Theorem we must draw the pessimistic conclusion that under very general institutional arrangements there is no Arrow constitution for the firm. Of course, constitutions do exist for theoretical special cases, which have been widely used in the past literature. Although these cases have obvious important roles to play for many positive theoretical problems, they may be too simplistic to explain more complicated phenomenon relating to the financial and organizational structure of firms. Copyright Martinus Nijhoff Publishers 1981

Suggested Citation

  • Frank Milne, 1981. "The firm's objective function as a collective choice problem," Public Choice, Springer, vol. 37(3), pages 473-486, January.
  • Handle: RePEc:kap:pubcho:v:37:y:1981:i:3:p:473-486
    DOI: 10.1007/BF00133746
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF00133746
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Kelsey & Frank Milne, 2008. "Imperfect Competition and Corporate Governance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 1115-1141, December.
    2. Miguel Antón & Florian Ederer & Mireia Giné & Martin Schmalz, 2016. "Common Ownership, Competition, and Top Management Incentives," Cowles Foundation Discussion Papers 2046R, Cowles Foundation for Research in Economics, Yale University, revised Oct 2017.
    3. Stefano Demichelis & Klaus Ritzberger, 2007. "Corporate Control and the Stock Market," Carlo Alberto Notebooks 60, Collegio Carlo Alberto.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:37:y:1981:i:3:p:473-486. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.