The Banzhaf index in complete and incomplete shareholding structures: A new algorithm

Marc Levy ()

European Journal of Operational Research, 2011, vol. 215, issue 2, 411-421

Abstract: In this global world, many firms present a complex shareholding structure with indirect participation, such that it may become difficult to assess a firm's controllers. Furthermore, if there are numerous dominant shareholders, the control can be shared between them. Determining who has the most influence is often a difficult task. To measure this influence, game theory allows the modeling of voting games and the computing of the Banzhaf index. This paper firstly offers a new algorithm to compute this index in all structures and then suggests some modelisations of the floating shareholder. Then, our model is applied to a real case study: the French group Lafarge. This exemplary case demonstrates how the float's structure and hidden coalition can impact the power relationship between dominant shareholders.

Keywords: Control; Game; theory; Graph; theory; Ownership; structure; Banzhaf; index (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: The Banzhaf Index in Complete and Incomplete Shareholding Structures: A New Algorithm (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:215:y:2011:i:2:p:411-421

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