Ownership structure and control in incomplete market economies with transferable utility
We consider an economy with incomplete markets and a single ¯rm and assume that utility can be freely transferred in the form of the ini- tially available good 0 (quasilinearity). In this particularly simple and transparent framework, the objective of a firm can be defined as the max- imization of the total utility of its control group C measured in units of good 0. We analyze how the size and the composition of C influences the rm's market behavior and state conditions under which the firm sells its output at prices which are at, above, or below marginal costs, respectively. We discuss the assumption of competitive price perceptions and point out important differences between the concepts of a Dreze and of a Grossman- Hart equilibrium that occur in spite of the close similarity of the formulas which define them.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, Sanford J & Hart, Oliver D, 1979. "A Theory of Competitive Equilibrium in Stock Market Economies," Econometrica, Econometric Society, vol. 47(2), pages 293-329, March.
- Bejan, Camelia & Bidian, Florin, 2009.
"Ownership Structure and Efficiency in Large Economies,"
17677, University Library of Munich, Germany.
- Camelia Bejan & Florin Bidian, 2012. "Ownership structure and efficiency in large economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(3), pages 571-602, August.
- Egbert Dierker & Hildegard Dierker, 2010. "Drèze equilibria and welfare maxima," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 45(1), pages 55-63, October.
- Peter M. DeMarzo, 1993. "Majority Voting and Corporate Control: The Rule of the Dominant Shareholder," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 713-734.
- Dierker, Egbert & Dierker, Hildegard, 2010. "Welfare and efficiency in incomplete market economies with a single firm," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 652-665, September.
When requesting a correction, please mention this item's handle: RePEc:vie:viennp:1106. 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: (Paper Administrator)
If references are entirely missing, you can add them using this form.