Enterprise Forms and Economic Efficiency

Overview 1. Market Power and the Form of Enterprise 1.1. Introduction 1.2. The Model 1.3. The Efficient Form of Enterprise 1.4. Empirical Observations 1.5. Conclusion 1.6. Proofs 2. Asymmetric Information and the Form of Enterprise 2.1. Introduction 2.2 The Model 2.3. The Efficient Form of Enterprise 2.4. Conclusion 2.5. Equilibrium with a Capitalistic Firm 2.6 Proofs 3. Externalities and the Form of Enterprise 3.1. Introduction 3.2. The Model 3.3. The Efficient Form of Government Enterprise 3.4. A Two-Local District Case 3.5. Conclusion 3.6. The Market for a Public Good with a Capitalist Firm 3.7. A Case with More than Two Types of Residents 3.8. Proofs 4. The Predominance of Capitalist Firms in the Market Economy 4.1. Introduction 4.2. The Model 4.3. The Efficient Form of Enterprise 4.4. An Empirical Examination 4.5. Conclusion 4.6. Proofs 5. An Alternative System of Business Organization in the Market Economy 5.1. Introduction 5.2. The Model 5.3. An Economy with no Market Failure 5.4. Market Failure in the Debt Capital Market 5.5. Market Failure in the Product Market 5.6. Conclusion 5.7. Housing Companies in Finland 5.8. Procurement of Equity Capital in the Capitalistc System when ?