Voting in assemblies of shareholders and incomplete markets

B-Tier
Journal: Economic Theory
Year: 2005
Volume: 26
Issue: 4
Pages: 887-906

Authors (2)

Mich Tvede (Newcastle University) Hervé Crés (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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

Technical Details

RePEc Handle
repec:spr:joecth:v:26:y:2005:i:4:p:887-906
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25