Who Controls Allianz?
|Speaker:||Klaus Ritzberger, Institute of Advanced Studies, Vienna|
|Date:||Friday 26 May 2006|
|Location:||Lecture Room D, Streatham Court|
This paper studies a general equilibrium model with an investor controlled firm. Shareholders can vote on the firm’s production plan in an assembly. Prior to that they can trade shares on the stock market. There is always an equilibrium, where share trades lead to owners deciding for competitive behavior, but there may also be equilibria, where monoplistic behavior prevails.