Majority Choice and the Objective Function of the Firm under Uncertainty

A set of production vectors is said to fulfill the "current spanning" condition if any firm's current production vector is spanned by the rest of the market. Our major theorem shows that, given current spanning, a production plan may be found which will always win the approval of a majority of the firm's initial shareholders. Furthermore, these shareholders are shown to be the only ones concerned with the firm's production plans. Finally, we show that an equilibrium exists in which all firms choose plans approved by a majority of their shareholders.