Economics at your fingertips  

Equilibrium in a Stock Market Economy with Shareholder Voting

Asha Sadanand and John M Williamson

International Economic Review, 1991, vol. 32, issue 1, 1-35

Abstract: This paper demonstrates the existence of a shareholders' equilibrium for a two-period stock-market economy in which there may be fewer securities than states of the world. There are two allocation mechanisms in the economy: firms' owners may vote (direction restricted majority rule) to change firms' production plans across states while keeping shareholdings fixed, and individuals may trade their shares and stocks of a current production/consumption good while keeping firms' plans fixed. A shareholders' equilibrium is a set of firms' plans, and an allocation of shares and the current good which are stable with respect to both mechanisms. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (23) Track citations by RSS feed

Downloads: (external link) ... O%3B2-H&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().

Page updated 2022-01-06
Handle: RePEc:ier:iecrev:v:32:y:1991:i:1:p:1-35