Abstract: The conventional view of the firm cannot explain several important facts. We propose a new hypothesis that a corporation can adopt more advanced, delayed technologies, produce output more efficiently, and distribute it more optimally than a proprietorship or partnership, independent of uncertainty. Contrary to the conventional “selfish shareholder” view, a corporation is not owned by its shareowners, and not legally obligated to maximize either its profit or their wealth. This is because is a potential deathlessness social organization, legally separate from its shareholders, who have transferable shares, owns its capital permanently, and can have objectives separate from theirs.
Friday, September 13, 2019
3:30pm – 5:00pm
Small reception to follow in Room 426. All are invited to attend.