When do imperfectly competitive firms maximize profits? The lessons from a simple general equilibrium model with shareholders’ voting

Lahmandi-Ayed, Rim; Laussel, Didier

doi:10.1016/j.jmateco.2018.06.006

Cited by 6 publications

(8 citation statements)

References 9 publications

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“…Another issue of importance is the profit maximization hypothesis which becomes questionable when an important fraction of shareholders are also workers and consumers. This has already been addressed in the case of monopoly in Lahmandi- Ayed and Laussel (2018). The profit maximization assumption is even more questionable in the duopoly case as shareholders have equal shares in both firms.…”

Section: Discussionmentioning

confidence: 99%

Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

Ghazzai¹,

Hemissi²,

Lahmandi-Ayed³

et al. 2021

Revue d'Économie Politique

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This note considers a general equilibrium model where individuals are potentially consumers, workers, and shareholders. It extends the results obtained previously by Kahloul et al. (2017) with extreme ownership structures on the majority vote between Monopoly and Duopoly, to the case of any proportion of shareholders in the population.We prove that Duopoly is preferred when non-shareholders constitute a majority of the population. Otherwise, the majority vote depends on the proportion of shareholders and the dispersion of the individuals with respect to their intensity of preference for quality relative to their sensitivity to effort.

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Section: Discussionmentioning

confidence: 99%

Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

Ghazzai¹,

Hemissi²,

Lahmandi-Ayed³

et al. 2021

Revue d'Économie Politique

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“…We build on the basic model introduced by Kahloul et al (2017) and used by Lahmandi-Ayed and Laussel (2018).…”

Section: The Modelmentioning

confidence: 99%

“…• H 2 : The State commits to cover the possible losses a private shareholder may incur. 15 Helpfully, we denote by γ = α θ (as in Lahmandi-Ayed and Laussel, 2018). This is the ratio between the maximum disutility of manufacturing one unit of output and the maximum utility of consuming it.…”

Section: Wherementioning

confidence: 99%

When do privatizations have popular support? A voting model

Lahmandi-Ayed

Laussel

2022

Journal of Mathematical Economics

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“…Shareholders may have different preferences and interests in a company, but in the standard economic literature, it is assumed that the company's goal is to maximize profits (Lahmandi-Ayed & Laussel, 2018). Salvatore (2005) explains that the company that was founded as the main goal of maximizing the wealth or value of the company (Profita & Ratnaningsih, 2016).…”

Section: The Value Of the Companymentioning

confidence: 99%

Do you know Company Value? It's Depend on Accounting Disclosure and Performance Environment: Evidence from Indonesian Country

Saputro¹,

Indraswono²

2022

KINERJA

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This research is important to do to find out the factors that affect the firm value. Therefore, researchers want to examine the effect of ADCE and environmental performance on firm value. Researchers used the 2016 GRI standards to measure environmental performance. The results of this study are expected to add/strengthen empirical evidence regarding legitimacy theory and the triple bottom line concept as well as deepen knowledge about what factors can affect firm value, which can be used as additional references for research. in the future and hopes to add to the company's initiatives in preserving the environment. This study provides the following conclusions accounting disclosure Carbon emissions have a negative effect on firm value and environmental performance has a positive effect on firm value. This means that if the environmental performance of a company is getting better, it can increase the value of the company because investors will give a positive response by buying company shares so that it can increase share prices which have implications for increasing company value. For the government, if ADCE is made as a regulation, what must be considered is to provide a third party as a verifier in the calculation of carbon emissions so that the ADCE disclosed by the company can be trusted. For companies, if they want to disclose carbon information voluntarily, it is better to choose which information should be disclosed.

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When do imperfectly competitive firms maximize profits? The lessons from a simple general equilibrium model with shareholders’ voting

Cited by 6 publications

References 9 publications

Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

Note on Democracy and Competition: The Role of Ownership Structure in a General Equilibrium Model with Vertical Preferences

When do privatizations have popular support? A voting model

Do you know Company Value? It's Depend on Accounting Disclosure and Performance Environment: Evidence from Indonesian Country

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