Ownership structure and profit maximization in general equilibrium models with market power

• Vincent Boitier ^[1]
  1. [1] Le Mans University, France
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 12, Nº. 1, 2023, págs. 85-90
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Using Hart (1979, 1985) and Mas-Colell (1984), I defend the idea that the standard ownership structure is somewhat problematic in general equilibrium models of monopolistic competition because profit maximization is not a justified objective of the firm. I then advocate that a solution to overcome this methodological issue is when ownership is disproportionally concentrated among households.