ECO320Y5 Lecture Notes - Lecture 11: Nash Equilibrium
Document Summary
A problem in main corporations, with publicly traded stock, shareholders felt they were out of the loop. The more information available to decision makers, the better. If (cid:455)ou"(cid:396)e (cid:272)o(cid:396)po(cid:396)atio(cid:374) has i(cid:374)su(cid:396)a(cid:374)(cid:272)e fo(cid:396) sa(cid:455) (cid:373)illio(cid:374), (cid:455)ou (cid:449)o(cid:374)"t (cid:271)u(cid:455) fo(cid:396) (cid:373)o(cid:396)e tha(cid:374) that (cid:373)illio(cid:374) The higher up you are on the supply line, the less worry you have. Secured creditors (banks, debentures, bonds) preferred creditors unsecured creditors (revenue canada, judgements) (employees, suppliers) shareholders. Preferred creditors law protects them, gives them priority. Unsecured people working for companies, between pay periods may not get paid. Shareholders most debt originates in a contract situation. Five ways to get out of contracts: agree to terminate, renegotiate, reorganize, bankruptcy, breach of contract. Gilbert steel a canadian case following foakes vs. beer as a precedent. Prisoners dilemma the uncooperative game: without the p(cid:396)io(cid:396)itizatio(cid:374) o(cid:396) hie(cid:396)a(cid:396)(cid:272)h(cid:455) of (cid:272)(cid:396)edito(cid:396)s, the(cid:396)e is a (cid:862)su(cid:271)opti(cid:373)al(cid:863) nash e(cid:395)uili(cid:271)(cid:396)iu(cid:373)
