Decisions and optimality in competitive stock ownership economies.

Reexamination of the decision theoretic structure of a Diamond-Dreze stock market economy reveals that general lack of optimal equilibrium allocations is an informational problem. Prices of firms' shares and observed production convey information sufficient for weak form market efficiency, but is i...

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Publicado en:International Economic Review Vol. 36; pp. 53 - 75
Autor principal: Suchanek, Gerry L.
Formato: Artículo
Publicado: Wiley-Blackwell February 1995
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: February 1995
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      pub: Wiley-Blackwell
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        atl: Decisions and optimality in competitive stock ownership economies.
      aug:
        au: Suchanek, Gerry L.
      su:
        Resource allocation -- Mathematical models
        Marginal utility
        Mathematical models
        Stock ownership
        Economic decision making
        Welfare economics
        Mathematical models of economics
        Production functions (Economic theory)
      sug:
        subj:
          Resource allocation -- Mathematical models
          Marginal utility
          Mathematical models
          Stock ownership
          Economic decision making
          Welfare economics
          Mathematical models of economics
          Production functions (Economic theory)
      ab: Reexamination of the decision theoretic structure of a Diamond-Dreze stock market economy reveals that general lack of optimal equilibrium allocations is an informational problem. Prices of firms' shares and observed production convey information sufficient for weak form market efficiency, but is inadequate for investors to select socially optimal portfolios which constitute strong form market efficiency. Revising the optimality concept to accommodate information constraints yields a notion of information constrained Pareto optimality. This concept reflects general application of the principle of semistrong form market efficiency. Our approach subsumes the Bayesian approach. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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