Dierker, Egbert; Dierker, Hildegard; Grodal, Birgit - Centre for Industrial Economics (CIE), Økonomisk Institut - 2000
We consider a firm acting strategically on behalf of its shareholder. The price normalization problem arising in general equilibrium models of imperfect competition can be overcome by using the concept of real wealth maximization. This concept is based on shareholders´ aggregate demand and does...