This article establishes conditions sufficient to ensure that a decision of a firm is judged to be desirable by any one shareholder (e.g., the firm's manager) if and only if every shareholder judges it to be desirable. One such condition is that the decision would not alter the set of...

The findings of Jensen-Long and Stiglitz on the optimality of the stock market allocation have led to a controversy over whether the sources of the nonoptimality of value maximization are noncompetive assumptions about the capital market or are inherent externalities associated with uncertainty...