| 000 | 02322nam a22002537a 4500 | ||
|---|---|---|---|
| 003 | ZW-GwMSU | ||
| 005 | 20240319130705.0 | ||
| 008 | 240319b |||||||| |||| 00| 0 eng d | ||
| 040 |
_aMSU _bEnglish _cMSU _erda |
||
| 050 | _aHB119 ECO | ||
| 100 | 1 |
_aBritz, Volker _eauthor |
|
| 245 | 1 | 2 |
_aA bargaining theory of the firm _cby Volker Britz, P. Jean-Jacques Herings and Arkadi Predtetchinski |
| 264 | 1 |
_aHeildelberg : _bSpringer, _c2013 |
|
| 336 |
_2rdacontent _atext _btxt |
||
| 337 |
_2rdamedia _aunmediated _bn |
||
| 338 |
_2rdacarrier _avolume _bnc |
||
| 440 |
_aEconomic theory _vVolume 54, number 1 |
||
| 520 | _aSuppose that a firm has several owners and that the future is uncertain in the sense that one out of many different states of nature will realize tomorrow. An owner’s time preference and risk attitude will determine the importance he places on payoffs in the different states. It is a well-known problem in the literature that under incomplete asset markets, a conflict about the firm’s objective function tends to arise among its owners. In this paper, we take a new approach to this problem, which is based on non-cooperative bargaining. The owners of the firm play a bargaining game in order to choose the firm’s production plan and a scheme of transfers which are payable before the uncertainty about the future state of nature is resolved. We analyze the resulting firm decision in the limit of subgame-perfect equilibria in stationary strategies. Given the distribution of bargaining power, we obtain a unique prediction for a production plan and a transfer scheme. When markets are complete, the production plan chosen corresponds to the profit-maximizing production plan as in the Arrow–Debreu model. Contrary to that model, owners typically do use transfers to redistribute profits. When markets are incomplete, the production plan chosen is almost always different from the one in a transfer-free Drèze (pseudo-)equilibrium and again owners use transfers to redistribute profits. Nevertheless, our results do support the Drèze criterion as the appropriate objective function of the firm. | ||
| 650 | _aBargaining theory | ||
| 700 | 1 |
_aHerings, P. Jean-Jacques _eco-author |
|
| 700 | 1 |
_aPredtetchinski, Arkadi _eco-author |
|
| 856 | _u10.1007/s00199-012-0721-3 | ||
| 942 |
_2lcc _cJA |
||
| 999 |
_c164449 _d164449 |
||