Competing for Ownership

Patrick Legros and Andrew Newman

CEDI Discussion Paper Series from Centre for Economic Development and Institutions(CEDI), Brunel University

Abstract: We develop a tractable model of the allocation of ownership and control in firms in competitive markets that permits study of how the scarcity of assets in the market translates into control allocations inside the organization. The model identifies a price-like mechanism whereby local liquidity or productivity shocks propagate and lead to widespread organizational restructuring. Firms will be more integrated when the terms of trade are more favorable to the short side of the market, when liquidity is unequally distributed among existing firms and following a uniform increase in productivity. Shocks to the first two moments of the liquidity distribution have multiplier effects on the corresponding moments of the distribution of ownership.

Pages: 39 pages
Date: 2007-05
New Economics Papers: this item is included in nep-bec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.brunel.ac.uk/__data/assets/pdf_file/0004/342679/CEDI_07-02.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.brunel.ac.uk/__data/assets/pdf_file/0004/342679/CEDI_07-02.pdf [301 Moved Permanently]--> https://www.brunel.ac.uk/__data/assets/pdf_file/0004/342679/CEDI_07-02.pdf)

Related works:
Journal Article: Competing for Ownership (2008)
Working Paper: Competing for ownership (2008)
Working Paper: Competing for Ownership (2007)
Working Paper: Competing for Ownership (2004)
Working Paper: Competing for Ownership (2000)
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: https://EconPapers.repec.org/RePEc:edb:cedidp:07-02

Access Statistics for this paper

More papers in CEDI Discussion Paper Series from Centre for Economic Development and Institutions(CEDI), Brunel University CEDI, Brunel University,West London,UB8 3PH,United Kingdom. Contact information at EDIRC.
Bibliographic data for series maintained by Sarmistha Pal ( this e-mail address is bad, please contact ).