Ownership structure and profit maximization in general equilibrium models of monopolistic competition

Authors

  • Vincent Boitier Le Mans University

DOI:

https://doi.org/10.17811/ebl.12.1.2023.85-90

Keywords:

Methodological issues, monopolistic competition, , ownership structure

Abstract

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.

References

Nothing to declare

Downloads

Published

26-03-2023

How to Cite

Boitier , V. (2023). Ownership structure and profit maximization in general equilibrium models of monopolistic competition. Economics and Business Letters, 12(1), 85–90. https://doi.org/10.17811/ebl.12.1.2023.85-90

Issue

Section

Articles