scholarly journals Entrepreneurial Stewardship: Why Some Profits Should Be Used to Benefit Others

2020 ◽  
Vol 30 (4) ◽  
pp. 525-551 ◽  
Author(s):  
Jooho Lee
Keyword(s):  
Property Rights ◽  
Social Welfare ◽  
Moral Obligation ◽  
Market Process ◽  
Market Participants ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Ex Post ◽  
Ex Ante ◽  
The Difference

ABSTRACTEntrepreneurs should act as stewards of entrepreneurial rent. Entrepreneurial rent is the difference between the ex post value of a venture and its ex ante costs. It is the result of competition among buyers and sellers within the market process rather than the sole efforts of the entrepreneur. As a result, entrepreneurs should allocate entrepreneurial rent for the benefit of other market participants rather than consuming it for themselves. The moral obligation to steward entrepreneurial rent is consistent with traditional bases of property rights and the norm of social welfare maximization, and it applies to corporations and their shareholders, as well as individual entrepreneurs.

scholarly journals Measurement of inequality of opportunity: A normative approach

2021 ◽  
Author(s):  
Kristof Bosmans ◽  
Z. Emel Öztürk
Keyword(s):  
Income Distribution ◽  
Social Welfare ◽  
Inequality Of Opportunity ◽  
Welfare Gain ◽  
Allocation Rules ◽  
Normative Approach ◽  
Ex Post ◽  
Ex Ante ◽  
Measurement Of Inequality

AbstractWe develop a normative approach to the measurement of inequality of opportunity. That is, we measure inequality of opportunity by the welfare gain obtained in moving from the actual income distribution to the optimal income distribution of the total available income. Our study brings together the main approaches in the literature: we axiomatically characterize social welfare functions, we obtain prominent allocation rules as their optima, and we derive familiar classes of inequality of opportunity measures. Our analysis captures moreover the key philosophical distinctions in the literature: ex post versus ex ante compensation, and liberal versus utilitarian reward.

scholarly journals Game-Theory Modeling for Social Welfare Maximization in Smart Grids

Energies ◽  
2018 ◽  
Vol 11 (9) ◽  
pp. 2315 ◽  
Author(s):  
Yu Hwang ◽  
Issac Sim ◽  
Young Sun ◽  
Heung-Jae Lee ◽  
Jin Kim
Keyword(s):  
Power Generation ◽  
Social Welfare ◽  
Smart Grids ◽  
Stackelberg Game ◽  
Evolutionary Game ◽  
Profit Maximization ◽  
Additional Parameter ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Energy Strategies

In this paper, we study the Stackelberg game-based evolutionary game with two players, generators and energy users (EUs), for monetary profit maximization in real-time price (RTP) demand response (DR) systems. We propose two energy strategies, generator’s best-pricing and power-generation strategy and demand’s best electricity-usage strategy, which maximize the profit of generators and EUs, respectively, rather than maximizing the conventional unified profit of the generator and EUs. As a win–win strategy to reach the social-welfare maximization, the generators acquire the optimal power consumption calculated by the EUs, and the EUs obtain the optimal electricity price calculated by the generators to update their own energy parameters to achieve profit maximization over time, whenever the generators and the EUs execute their energy strategy in the proposed Stackelberg game structure. In the problem formulation, we newly formulate a generator profit function containing the additional parameter of the electricity usage of EUs to reflect the influence by the parameter. The simulation results show that the proposed energy strategies can effectively improve the profit of the generators to 45% compared to the beseline scheme, and reduce the electricity charge of the EUs by 15.6% on average. Furthermore, we confirmed the proposed algorithm can contribute to stabilization of power generation and peak-to-average ratio (PAR) reduction, which is one of the goals of DR.

Dividend policy and probability of extreme returns

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Bouaddi ◽  
Omar Farooq ◽  
Neveen Ahmed
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Dividend Policy ◽  
Actual State ◽  
Content Type ◽  
Market Participants ◽  
Dividend Payments ◽  
Ex Post ◽  
Ex Ante ◽  
The Future

PurposeThis study examines the effect of dividend policy on the ex ante probability of stock price crash and the ex ante probability stock price jump.Design/methodology/approachWe use the data of publicly listed non-financial firms from France and the ex ante measures of crash and jump probabilities (based on the Flexible Quadrants Copulas) to test our hypothesis during the period between 1997 and 2019.FindingsOur results show that dividend payments are negatively associated with the ex ante probability of crash and positively associated with the ex ante probability of jump. Our results are robust across various sub-samples and across different proxies of dividend policy. Our findings also hold when we use ex-post measures of crash and jump probabilities.Originality/valueUnlike prior literature, we use ex ante measures of crash and jump probabilities. The main advantage of this forward looking measure is that it allows for more flexibility by modeling the dependence between market returns and stock returns as functions of their actual state. Our measure is also consistent with the behavior of investors and market participants in a way that the market participants do not know the future outcome with certainty, but rather they are anticipating the future.

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