Corporate self-regulation of imperfect competition

We consider Cournot competition in general equilibrium. Decisions firms are taken by majority voting. Naturally, interests of voters—shareholders or stakeholders—depend on their endowments and portfolios. Indeed, voters every firm concerned about the return portfolios rather than shares firm. introduce two notions local Cournot–Walras equilibria to overcome difficulties arising from non-concavity profit functions multiplicity equilibrium prices. show existence equilibria, characterize distributions voting weights for which allocations Pareto optimal. discuss efficiency various governance modes highlight importance financial markets regulating large firms.