Voting in assemblies of shareholders and incomplete markets

Mich Tvede and Hervé Crès

Economic Theory, 2005, vol. 26, issue 4, 887-906

Abstract: An economy with two dates is considered, one state at the first date and a finite number of states at the last date. Shareholders determine production plans by voting - one share, one vote - and at $\rho$ -majority stable stock market equilibria, alternative production plans are supported by at most $\rho \times 100$ percent of the shareholders. It is shown that a $\rho$ -majority stable stock market equilibrium exists if $$ \rho\ \geq\ \dfrac{S-J}{S-J + 1}, $$ where S is the number of states at the last date and J is the number of firms. Moreover, an example shows that $\rho$ -majority stable stock market equilibria need not exist for smaller $\rho$ ’s. Copyright Springer-Verlag Berlin/Heidelberg 2005

Keywords: General equilibrium; Incomplete markets; Production; Shareholders’ voting; Super majority. (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (22)

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Related works:
Working Paper: Voting in Assemblies of Shareholders and Incomplete Markets (2004)
Working Paper: Voting in assemblies of shareholders and incomplete markets (2001)
Working Paper: Voting in Assemblies of Shareholders and Incomplete Markets (2001)
Working Paper: Voting in Assemblies of shareholders and Incomplete Markets (2001)
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DOI: 10.1007/s00199-004-0537-x

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