Ownership Structure and Efficiency in Large Economies

Bejan, Camelia and Bidian, Florin (2009): Ownership Structure and Efficiency in Large Economies.

Abstract

We analyze the limit behavior of sequences of oligopolistic equilibria in which firms follow objectives consistent with their shareholders' interests. We show that the efficiency of the limit allocation depends on how firms' shares are distributed across consumers, and provide a characterization of the class of ownership structures that lead to Walrasian equilibrium allocations in the limit.

• Item Type: MPRA Paper
• Language: English
• Keywords: the objective of the firm, oligopolistic competition, ownership structure, efficiency
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General

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