The General Equilibrium Model with Joint Ownership of the Corporation (Voting Stock and the Core),
Abstract
The note deals with a small but important point in the modelling of a general equilibrium system. The point specifically is that the Arrow-Debreu treatment of the joint ownership of industry by introducing shares which can be treated, requires further specification. The need for further specification can be seen immediately when this model is examined not for the competitive equilibrium but for the core. It is well known that the competitive equilibrium is contained within the core. However it will be shown that unless extra conditions are imposed on the control of stock the resultant game may have no core whatsoever and hence no competitive equilibrium. An example illustrating this is given.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 02, 1973
- Accession Number
- AD0761194
Entities
People
- Martin Shubik
Organizations
- Yale University