Voting in Assemblies of Shareholders and Incomplete Markets
Résumé
An economy with two dates is considered, one state at the first date and a finite number of states at the last date. Shareholders determine production plans by voting - one share, one vote - and at p-majority stable equilibria, alternative production plans are supported by at most p x 100 percent of the shareholders. It is shown that a p-majority stable equilibrium exists provided that p > (S - J) / (S - J + 1') where S is the number of states at the last date, J is the number of firms and B is the dimensions of the sets of efficient production plans for firms. Moreover, an example shows that p majority stable equilibria need not exist for smaller p's.