Allen, Franklin; Carletti, Elena; Marquez, Robert - Department of Economics, European University Institute - 2009
In countries such as Germany, the legal system is such that firms are necessarily stakeholder oriented. In others like … Japan social convention achieves a similar effect. We analyze the advantages and disadvantages of stakeholder-oriented firms … imperfect competition stakeholder firms have higher prices and lower output than shareholder-oriented firms. Surprisingly, we …