The General Equilibrium Model with Joint Ownership of the Corporation (Voting Stock and the Core),
YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
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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.
- Economics and Cost Analysis
- Operations Research