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Abstract
Variations of a result by Dybvig and Ross provide necessary conditions
for the FSD, SSD and TSO efficiency of enterprise mixtures. Several of their
perfect market portfolio problem results are adapted to the enterprise mixture
problem. The results imply that the sets of enterprise mixtures which satisfy
the necessary conditions for FSD, SSD and TSO efficiency are unions of finite
numbers of convex subsets. Linear programming can be used to determine
whether a particular mixture and the (appropriately defined) convex subset to
which it belongs satisfy these conditions. These ideas are illustrated by
applying them to a simple example.