Academic Journal
A Consistent Firm Objective When Markets are Incomplete: Profit Maximization
| العنوان: | A Consistent Firm Objective When Markets are Incomplete: Profit Maximization |
|---|---|
| المؤلفون: | Tarun Sabarwal |
| المساهمون: | The Pennsylvania State University CiteSeerX Archives |
| المصدر: | http://www.kier.kyoto-u.ac.jp/~geta2004/sabarwal_profitmax.pdf. |
| سنة النشر: | 2004 |
| المجموعة: | CiteSeerX |
| مصطلحات موضوعية: | Incomplete Markets, Firm Objective, Profit Maximization, Shareholder Prefer- ences |
| الوصف: | In economies with private firm ownership, when markets are incomplete, and firm shareholders change over time, there is no broad agreement on what ought to be a firm’s objective. It is shown that ex-post, profit maximization is consistent with shareholder preferences in such economies; that is, along the equilibrium path, in every period and state of the world, every coalition of a firm’s shareholders in that period and state approves a profit-maximizing production plan. This result is shown using natural assumptions about shareholder preferences and shareholder control, and it applies to cases when shareholders within a firm and across firms can form coalitions, and when stock trading can be ex-dividend or cum-dividend, and with a combination of both. This result provides a natural and familiar basis for formulating a theory of the firm when markets are incomplete; a theory based on primitives of share-holder preferences and shareholder control that are to be necessarily satisfied in economies with private firm ownership. |
| نوع الوثيقة: | text |
| وصف الملف: | application/pdf |
| اللغة: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.501.5554; http://www.kier.kyoto-u.ac.jp/~geta2004/sabarwal_profitmax.pdf |
| الاتاحة: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.501.5554 http://www.kier.kyoto-u.ac.jp/~geta2004/sabarwal_profitmax.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| رقم الانضمام: | edsbas.67F737A2 |
| قاعدة البيانات: | BASE |
| الوصف غير متاح. |