IDEAS home Printed from https://ideas.repec.org/p/mag/wpaper/09007.html
   My bibliography  Save this paper

Volkswagen vs. Porsche. A Power-Index Analysis

Author

Listed:
  • Roland Kirstein

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

After Porsche SE took over Volkswagen AG, its supervisory board consists of three groups: The Porsche shareholders hold 6 seats, while the 324,000 Volkswagen employees and the 12,000 Porsche employees will be represented by 3 delegates each. This paper perceives each of these three groups as unitary players and presents a power-index analysis of this supervisory board. It shows that, unless the Porsche employees are made completely powerless, Porsche and VW employees will have identical power regardless of the actual distribution of seats on the employees' side. This analysis demonstrates that the request of the Volkswagen employees (for more seats than the Porsche employees in the future supervisory board) is unfounded.

Suggested Citation

  • Roland Kirstein, 2009. "Volkswagen vs. Porsche. A Power-Index Analysis," FEMM Working Papers 09007, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:09007
    as

    Download full text from publisher

    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_07.pdf
    File Function: First version, 2009
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Shapley, L. S. & Shubik, Martin, 1954. "A Method for Evaluating the Distribution of Power in a Committee System," American Political Science Review, Cambridge University Press, vol. 48(3), pages 787-792, September.
    2. Bernard Steunenberg & Dieter Schmidtchen & Christian Koboldt, 1999. "Strategic Power in the European Union," Journal of Theoretical Politics, , vol. 11(3), pages 339-366, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roland Kirstein & Matthias Peiss, 2013. "Quantitative Machtkonzepte in der Ökonomik," FEMM Working Papers 130004, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Balsmeier, Benjamin & Bermig, Andreas & Dilger, Alexander, 2013. "Corporate governance and employee power in the boardroom: An applied game theoretic analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 51-74.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roland Kirstein & Matthias Peiss, 2013. "Quantitative Machtkonzepte in der Ökonomik," FEMM Working Papers 130004, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Deniz Aksoy, 2010. "Who gets what, when, and how revisited: Voting and proposal powers in the allocation of the EU budget," European Union Politics, , vol. 11(2), pages 171-194, June.
    3. László Á. Kóczy, 2016. "Power Indices When Players can Commit to Reject Coalitions," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(1), pages 77-91, August.
    4. Borkowski, Agnieszka, 2003. "Machtverteilung Im Ministerrat Nach Dem Vertrag Von Nizza Und Den Konventsvorschlagen In Einer Erweiterten Europaischen Union," IAMO Discussion Papers 14887, Institute of Agricultural Development in Transition Economies (IAMO).
    5. Mika Widgrén, 2008. "The Impact of Council's Internal Decision-Making Rules on the Future EU," Discussion Papers 26, Aboa Centre for Economics.
    6. Le Breton, Michel & Montero, Maria & Zaporozhets, Vera, 2012. "Voting power in the EU council of ministers and fair decision making in distributive politics," Mathematical Social Sciences, Elsevier, vol. 63(2), pages 159-173.
    7. Serguei Kaniovski, 2008. "The exact bias of the Banzhaf measure of power when votes are neither equiprobable nor independent," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(2), pages 281-300, August.
    8. Stefan Napel & Mika Widgrén, 2011. "Strategic versus non-strategic voting power in the EU Council of Ministers: the consultation procedure," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(3), pages 511-541, September.
    9. Julien Reynaud & Fabien Lange & Łukasz Gątarek & Christian Thimann, 2011. "Proximity in Coalition Building," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 3(3), pages 111-132, September.
    10. Kyungjin Yoo & Seth Blumsack, 2018. "Can capacity markets be designed by democracy?," Journal of Regulatory Economics, Springer, vol. 53(2), pages 127-151, April.
    11. Nicola Maaser & Alexander Mayer, 2016. "Codecision in context: implications for the balance of power in the EU," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(1), pages 213-237, January.
    12. Widgrén, Mika, 2008. "The Impact of Council Voting Rules on EU Decision-Making," Discussion Papers 1162, The Research Institute of the Finnish Economy.
    13. Stefano Benati & Giuseppe Vittucci Marzetti, 2021. "Voting power on a graph connected political space with an application to decision-making in the Council of the European Union," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(4), pages 733-761, November.
    14. Widgren, Mika & Kauppi, Heikki, 2008. "Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?," CEPR Discussion Papers 6778, C.E.P.R. Discussion Papers.
    15. Dan S. Felsenthal & Moshé Machover, 2015. "The measurement of a priori voting power," Chapters, in: Jac C. Heckelman & Nicholas R. Miller (ed.), Handbook of Social Choice and Voting, chapter 8, pages 117-139, Edward Elgar Publishing.
    16. Agnieszka Rusinowska, 2010. "The Hoede–Bakker Index Modified to the Shapley–Shubik and Holler–Packel Indices," Group Decision and Negotiation, Springer, vol. 19(6), pages 543-569, November.
    17. Jenny Helstroffer & Marie Obidzinski, 2014. "Codecision procedure biais: the European legislation game," European Journal of Law and Economics, Springer, vol. 38(1), pages 29-46, August.
    18. Agnieszka Rusinowska, 2010. "The Hoede-Bakker index modified to the Shapley-Shubik and Holler-Packel indices," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00406430, HAL.
    19. Zaremba Leszek & Zaremba Cezary S. & Suchenek Marek, 2017. "Modification of Shapley Value and its Implementation in Decision Making," Foundations of Management, Sciendo, vol. 9(1), pages 257-272, October.
    20. Matthew Braham & Manfred J. Holler, 2005. "The Impossibility of a Preference-Based Power Index," Journal of Theoretical Politics, , vol. 17(1), pages 137-157, January.

    More about this item

    Keywords

    Banzhaf power-index; supervisory board; societas europeae;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mag:wpaper:09007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Guido Henkel (email available below). General contact details of provider: https://edirc.repec.org/data/fwmagde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.