Value Maximization and Welfare

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Corporate governance and market value maximization are crucial topics. Lecture content on these themes can be challenging to perceive, especially in extended durations. Despite the complexity, a mathematically proficient audience can grasp the concepts effectively. One key idea discussed is the discrepancy between maximizing shareholder value and maximizing societal welfare. The consensus was that focusing solely on shareholder value does not necessarily lead to the overall welfare optimization.

Nobel Prize-winning economist Joseph Stiglitz joined Tyler for a discussion that weaves through Joe’s career and key contributions, including what he learned from giving an 8-lecture in Japan, how being a debater influenced his intellectual development, why he tried to abolish fraternities at Amherst, how studying Kenyan sharecropping led to one of his most influential papers, what he thinks today of Georgism and the YIMBY movement, why he was too right-wing for Cambridge, why he left Gary, Indiana, his current views on high trading volumes and liquidity, the biggest difference between him and Paul Krugman, what working in Washington, DC taught him about hierarchies, what he’ll do next, and more.

Read a full transcript enhanced with helpful links, or watch the full video.

Recorded April 22nd, 2024.

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