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The topic of shareholder's duty of loyalty is an important aspect for the definition of most of the duties and obligations of the capital company members. Therefore, it is also very popular topic for the authors of professional literature, who tend to be interested in systematized distinction of the duties and obligations of the capital company members. Most authors, along with the jurisprudence, already admit considerable importance of principle of loyalty and consider it to be the rule of interpretation appropriate for its application to the other duties and obligations of company members. The principle of loyalty, having a regulatory function, may fill in particular gaps in the statutory regulation. As a derogatory rule it may avoid the application of other rules that would lead to unfair decisions. This work aims to demonstrate the possibility of application of the principle of loyalty in practice. The thesis is divided into two main parts, the first is meant to clarify the place of the duty of loyalty in Czech law. It describes how was the existence of the duty of loyalty inferred before its regulation in new Civil Code. Next chapters of the first part are devoted to current applicable regulation. The second part of the theses focuses on particular examples in order to demonstrate the...

This paper presents a model to explore how patterns of North-South FDI affect the bias of technology and the host country's economic growth. We develop our growth model in a unified framework of directed technical change and cooperative game. The host country's economic growth is embedded in a duopolistic international joint venture. Our model illustrates that: (i) the relative skill-augmenting technology is decreasing in the North-South relative bargaining power if technical and nontechnical intermediates are substitutes, but increasing if they are complements; (ii) there exists an inverse U-shaped relationship between the North-South relative profit share and the host country's steady-state economic growth rate.

In this paper the differences between the principle of effective demand of Keynes and Kalecki are analyzed, focusing on Kalecki’ s less well known version. The paper considers, in the first place, the theory of prices and the theory of distribution. Then it deals with the theory of investment, and finally it studies money and finance in the principle of effective demand. The author concludes that it would be difficult to disregard the importance of Kalecki’s theory of the profit share based on the pricing policy offirms, and of the profit level based on capitalist expenditure. A host of empirical research showing that investment is determined by past profits and is conditionally stable has also, in the authors’ opinion, vindicated Kalecki’s theory of investment. But, on the other hand, the study of the financial aspects of capitalism is an area where Kalecki’s theory needs to be completed and updated.

This paper extends the fossil production function to incorporate embodied technical change. The fossil production function provides an alternative to the standard neoclassical explanation for the aggregate production function. In a Classical Ricardian spirit, the paper assumes that capital-using, labour saving technical change prevails, and shows that it generates a fossil production function in Cobb-Douglas form. The power term of the production function mediates the viability of new machines. A sufficient condition for viability is that the power term equals or exceeds the profit share on new machines. Empirical estimates show that this sufficient condition is satisfied, a result inconsistent with the neoclassical interpretation of the aggregate production function.

Seaweed in Warbal Village, West Kei Kecil Subdistrict, Southeast Maluku Regency has prospects and business opportunities are adequate to give hope to farmers in improving welfare. The fact that seaweed farming has not yet provided better and maximum results as desired by the farmers. This study aims to evaluation the marketing channels, marketing margins and profit share of marketing agencies. The research is located in Warbal Village, West Kei Kecil Subdistrict, Southeast Maluku Regency which is determined purposively. The number of sample is 30 farmers taken by simple random sampling, 2 wholesaler traders and 2 collector traders taken by using snowball method. The data collection methods is interview and questionnaire directly to farmers and marketing agencies, literary method or data collector from institutions related to the research's aims. The research results show that there is two marketing channel, as follows: Channel I: farmers, wholesaler traders, collector traders, PAP; Channel II: farmers, collector traders, PAP. The magnitude of marketing margins is different between the marketing channels, and so it is with profit share of a marketing agency. On channel I, magnitude margin is IDR 3,250 and profit share is 71.11% on farmers, 17.76% on wholesaler traders and 11.09% on collector traders. On channel II, the magnitude of marketing margin is IDR 1,250 and profit share is 88.88% on farmers and 11.09% to collector traders.

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income--the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the relative shares while others provide a demand-driven explanation (Keynes, Kalecki, Kaldor, Goodwin). Two questions lead to a better understanding of the literature: is income distribution assumed constant?, and is income distribution endogenous or exogenous? However, and despite their insights, these theories alone fail to fully explain the current deterioration of income distribution. Subsequent installments are dedicated to analyzing the empirical literature (part II), to the measurement and composition of the relative shares (part III), and to a study of the role of economic policy (part IV).

In this second part of our study we survey the rapidly expanding empirical literature on the determinants of the functional distribution of income. Three major strands emerge: technological change, international trade, and financialization. All contribute to the fluctuations of the labor share, and there is a significant amount of self-reinforcement among these factors. For the case of the United States, it seems that the factors listed above are by order of increasing importance. We conclude by noting that the falling US wage shares cointegrates with rising inequality and a rising top 1 percent income share. Thus, all measures of income distribution provide the same picture. Liberalization and financialization worsen economic inequality by raising top incomes, unless institutions are strongly redistributive. The labor share has also fallen, for structural reasons and for reasons related to economic policy. Such explanations are left to parts III and IV of our study, respectively. Part I investigated the theories of income distribution.

Firms often give away free goods with the product they sell. Firms often give stock options to their managers and employees. Mixing these two practices—giving stocks to consumers who buy the firm's product—creates a deadly brew. People can be lured into buying this product, giving the entrepreneur huge profits and the consumers a growing profit share. But this is a camouflaged Ponzi that will ultimately crash. It is argued, by analogy, that the common practice of giving stock options to employees can be a factor behind financial crashes. Understanding this can help create a better regulatory structure.

This paper presents a model for designing the pricing and return-credit strategy for a monopolistic manufacturer of single-period commodities. That is, given the unit manufacturing cost and the unit retail sale price, the manufacturer determines: (i) the unit price C to be charged against the retailer; and (ii) the unit credit V to be given to the retailer for units returned. While the manufacturer is allowed to set C and V, the order quantity Q is set by the retailer in response to the manufacturer's C and V. Among the unexpected findings derived from our model are: (i) unless an external force supports the retailer, otherwise the manufacturer can usually design a (C,V)-scheme that gives himself the lion's share of the profit; (ii) depending on the risk attitudes of the manufacturer and the retailer, the optimal return policy can range from “no returns allowed” to “unlimited returns with full credit”; (iii) instead of losing his profit share to the retailer, a return-credits agreement can often be manipulated by a shrewd manufacturer to increase his profit.

Frank Thompson has proposed (this Review, 30(1): 90-107) that accumulation can cause the profit rate to fall (by forcing the wage rate to rise), but that biased technical change, by itself, can only cause the profit rate to rise (by forcing the wage rate to fall). By contrast, this paper argues that: 1) accumulation pressure generates cycles in the profit rate, but no trend; 2) biased technical change may (and in most circumstances is likely to) produce cycles around a falling trend. This is because the fall in the profit rate is associated with a rise in the profit share, and this latter rise reduces the degree of the optimal bias sought by capitalists and therefore establishes dynamic balance in the labor market at a lower rate of profit. Marx's story is therefore confirmed in a nuanced and conditional manner that focuses attention on the empirical conditions and social relations pro-ducing this particular contradictory law of motion.

The aim of this thesis is to clarify the distribution and taxation of a profit and the method of payment of a share in the profit in the general partnership, private limited company and limited partnerships. The theoretical part deals with general information of a share in the profit and its specifics in selected types of business corporations. This part is supplemented for better clarity and understanding with illustrative examples. The practical part applies knowledge in the analysis of the financial statements of 30 selected companies, with an emphasis on the payment of a share in the profits of the company.

This paper discusses trends in South African profitability between 1960 and 1989 (the last peak year before the release of Nelson Mandela in 1990). It is argued that where distributional conflict is a persistent feature of the economic historical landscape, or is claimed to be of central importance (as is the case with regard to the radical ‘cheap labour’ theory of capital accumulation and growth under apartheid), examining trends in profitability and the underlying forces behind it may be of some assistance to economic historians. Trends in the profit rate can be linked to institutional transformation, and deconstructing the profit rate can help isolate the relative importance of the profit share and productivity in shaping the rate of return for capitalists. The empirical analysis finds that there were different economic factors at work behind trends in profitability between 1960 and 1989, and that Marxist claims about cheap labour being the basis for supposedly rising profitability and growth under apartheid are not supported by the data. Rather, the paper highlights the role of falling capital productivity as the key determinant of falling profitability – developments which suggests that investment in the late apartheid period was misdirected in significant ways.

A comparison of the limited liability company with exclusive Czech ownership interest with entities of the same legal form with foreign ownership interest was the main target of the bachelor work. Analysis of the position of a limited liability company among other business entities in the Czech Republic was stated as a second target of the work. The last target given for the thesis was to analyse the legislation of this legal form in the frame of current practice of the court.

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income - the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the relative shares while others provide a demand-driven explanation (Keynes, Kalecki, Kaldor, Goodwin). Two questions lead to a better understanding of the literature: is income distribution assumed constant?, and is income distribution endogenous or exogenous? However, and despite their insights, these theories alone fail to fully explain the current deterioration of income distribution. Subsequent installments are dedicated to analyzing the empirical literature (part II), to the measurement and composition of the relative shares (part III), and to a study of the role of economic policy (part IV).

Equity participation in joint ventures as envisaged in Shari‘ah consists of a business relationship based on mutual sharing of gains and liability. Such partnerships as prevalent in every sphere of commerce generally involve the possibility of unlimited gains for each partner in theory, without limitations attached to the amount of return to any single partner. A central pillar of the equity structure in Shari‘ah is the unbridled operation of the profit sharing ratio. Restriction of its application to a stipulated level of profits, thereby enabling a partner to claim unlimited profits while the profit share of the other is restricted to a maximum ceiling cannot be regarded to be consistent with the theory of equity participation. While such measures could realise some temporary benefit to Islamic banks, with continued practice, they could become deep-rooted in the concept of equity financing itself, thus making it operate subservient to debt financing norms. Islamic banks should attempt to alienate their identity from being lending institutions, a pioneer step towards which would be to implement a dynamic profit and loss sharing mechanism.

In international rankings, Switzerland is regularly rated one of the most innovative economies in the world. Despite this, it still lacks service innovations, a fact that is all the more significant considering that this represents the largest sector of the country's economy. Different types of service innovation processes are identified: R&D-based, practice-oriented, and ad hoc processes. With regard to the methods used in these processes, these may have a stronger focus on service and/or innovation, and may be used with variable frequency. In a survey of 300 Swiss service companies, it was shown that innovative service companies use service-specific innovation processes and methods more frequently, which can increase the profit share of innovative services and improve their competitive position.

Aoki's profit-sharing firm organization is associated with the option evaluation model of investment. The firm is endowed with a shut-down option it can exercise when the market price, assumed to be uncertain, falls below a certain trigger level. The distributive parameter is the result of a bargaining process and is influenced by the shut-down option. Workers can delay the firm's shut down by sharing not only profits but also losses. In that case, the workers’ policy changes both the optimal distributive parameter and the trigger price in a nontrivial way. The overall result implies an increase in the profit share going to shareholders as compared to Aoki's original finding.

The purpose of this research is to explore the concept of dlaman (the responsibility) in the field of Syariah Banking. The concept refers to business investment based on the principle of profit share. In this sense, joint venture is a running business in which the risk account will be mutually responsible. Furthermore, related to financial loss, the capital loss is not the responsibility for such a manager, this is in the case if the manager is not careless or improper on his/her duty. This research applies the library approach concerning the classical and modern books to construct the concept of dlaman in the field of syariah banking. The result of research indicates that the role of Syariah Banking is not same with the role of mudlarib (investor manager) as the case of conventional mudlarabah (mudlarabah tsunaiyyah). In the classical books, the system of conventional mudlarabah regulates simply for the concept of profit share between two people namely: investor (shohibul mal) and mudlarib. Meanwhile, in fact the syariah banking can be act as mudllarib for saving customer as well as shohibul mal for financing customer. While, the role of Syariah bank to carry out the financial saving for society can be seen as mudlarib intermediary.

Interest has been forbidden in Quran-the holy book of Islam whereas Murabaha is a particular kind of sale in Islamic Finance where the seller expressly mentions the cost he has incurred of a commodity to be sold and sells it to another person by adding some profit or mark-up thereon which is known to the buyer. In terms of Generally Accepted Accounting Principles-GAAP and International Financial Reporting Standards-IFRS inventories are valued at the 'lower of cost and net realizable value.' This paper explores the murabaha and its degree of compliance with IFRS rules as far the profit share is concerned.

Decision rights affect the performance of of supply chain as well as the optimal decisions. In this paper, we develop retailer-led model of decentralized optimization, supplier-led model of decentralized optimization and the model of inventory-transportation integrated optimization(ITIO) based on delivery capacity and discount sale price. Study shows that supplier and retailers' optimal strategies depend on their profit share in ITIO. When their profit shares in ITIO is bigger than their profits in decentralized optimization, they will adopt ITIO strategy. When their profit shares in ITIO is smaller than that in decentralized optimization, they will adopt decentralized optimization strategy. In retailer-led model of decentralized optimization, flexibility of delivery capacity has positive effect on the distribution frequency, while supplier's sales price discount has negative effect on the distribution frequency. In supplier-led model of decentralized optimization, supplier's sales price discount has positive effect on the distribution frequency, but flexibility of delivery capacity has no effect on distribution frequency. In ITIO, flexibility of delivery capacity has positive effect on distribution frequency, but supplier's sales price discount has no effect on distribution frequency. The impact of supplier's sales price discount and flexibility of delivery capacity on distribution quantity are opposite to their effects on distribution frequency.

The purpose of this article is to investigate some managerial insights related to using the all-unit quantity discount policies under various conditions. The models developed here are general treatments that deal with four major issues: (a) one buyer or multiple buyers, (b) constant or price-elastic demand, (c) the relationship between the supplier's production schedule or ordering policy and the buyers' ordering sizes, and (d) the supplier either purchasing or manufacturing the item. The models are developed with two objectives: the supplier's profit improvement or the supplier's increased profit share analysis. Algorithms are developed to find optimal decision policies. Our analysis provides the supplier with both the optimal all-unit quantity discount policy and the optimal production (or ordering) strategy. Numerical examples are provided. © 1993 John Wiley & Sons. Inc.

A model depicting first-mover dynamics is proposed wherein certain types of strategic barriers activated by the first-mover strategy figure prominently in preserving benefits in the time dimension. Strategic barriers conferring singularity (i.e. one-time benefit) are considered to be the most effective preservers of first-mover advantage. the theoretical model is tested empirically in a study of six major industries. Benefits operationalized as industry share and profit share were found to decline consistently with industry age according to an exponential function designated the opportunity curve.

The strong brands of transnational companies have occupied most shares in the car market of China, with larger profit share. For the brand competitive force, the own-brand enterprises are in the absolutely inferior position. The simple model evaluating the brand competitive force is established in this article, and by the analysis of two Chinese enterprises, the brand competitive index model could reflect the actuality of the car brand competitive force in China, and relative opinions and suggestions are proposed for own-brand enterprises to enhance the brand competitive force.

The influence of the traditional pricing strategy on the profit and market share is analyzed. And then the fact that the enterprise can increase profit and market share in the approach of customized pricing strategy is demonstrated by comparing characteristics of the pricing strategy driven by customer requirements in mass customization (MC) and the traditional pricing strategy in mass production. Finally, the steps implementing the customized pricing strategy for mass customization is proposed concretely.

Manufacturing is main industry in our national economy, in this paper a new thought of technological innovation is put forward after analyzing the causation about the weak innovation in Chinese manufacturing, which is called faddy innovation, its thought is as follow: combining security, saving energy and resource, or protecting environment and so on with certain product, then do some research on this product to innovate new technology, which will bring rich and generous profit but avoiding going to research original core-technology. At the same time a pathway is given to complete the process of faddy innovation in order to get mainstream technology or core-technology, which is based on dissertated fully the predomination of faddy innovation. Faddy innovation is different from brim innovation, model of technological pullulation and change of profit share about faddy innovation is fully expatiated too, it possesses the stronger pertinence and maneuverability.

The joint determination of wages and the profit share rate is considered in a right to manage model of collective bargaining. This model encompasses different labour market models. It is shown for example that the profit share rate is determined solely by and depends positively on the bargaining power of the union and the union's concern for the level of unemployment. i.e. the degree of the union's concern for unemployment may explain why profit sharing is not more common.

Th is paper shows that a “new wave of globalization,” involving extensive off shoring, has raised both actual and perceived labor market insecurity in industrialized countries. Th e paper analyzes various channels through which this new wave of globalization leads to economic insecurity. It emphasises the key role of overall macroeconomic conditions in determining the outcome of off shoring. The paper points out the inadequacies of various policy responses that industrialized countries have come up with so far and advocates urgent steps toward formulation of policies and erection of institutional structure more appropriate to confront the challenges of the new of globalization.

Analysis of 35 U.S. manufacturing and service industries over the period 1998-2006 supports aggregate and firm-level studies showing that off-shoring is associated with a higher share of corporate profit in total value added. But these “dynamic” gains from off-shoring have not been realized, because firms have purchased financial assets – especially share buybacks and higher dividend payments – to raise shareholder value, rather than investing in productive assets that raise productivity, growth, employment and income. Despite the corporate sector’s contribution to national savings over the past decade, the off-shoring-financialization linkage reduces the capacity of non-financial corporations to act as a driver of the recovery from the economic crisis that emerged in 2008.

We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core behavioural equations for the US and Germany in the period 1960-2007, we find significant and robust effects of interest payments with the expected sign in each of the equations. Our estimation results imply, both for the US and for Germany, that the effects of changes in the real long-term rate of interest on the equilibrium rates of capacity utilisation, capital accumulation and profits are characterised by the ‘normal regime’: Rising long-term real rates of interest cause falling rates of capacity utilisation, capital accumulation and profits, as well as redistribution at the expense of labour income and hence an increasing profit share in both countries.

Through three rounds of total coverage survey on VC funds in Mainland China, we receive 41 VC fund samples. This paper, we empirically test the relation among the size of VC fund portfolios, entrepreneurs’ profit share and exogenous factors and find: (1) the portfolio size of a VC fund significantly varies non-monotonically with entrepreneurs’ profit share, the number of venture firms is first increasing when entrepreneurs’ profit share is low and then decreasing when it is high; (2) entrepreneurs’ profit share is significantly positive related with the number of venture firms in a VC fund; (3) government-sponsored VCs invest more venture firms but retain less profit share in a venture firm.

In this paper, we assess the cyclicality of mark-ups and profit margins within the United Kingdom, at both the aggregate and industry level. We find that the private sector labour share moves countercyclically, suggesting that the aggregate mark-up moves procyclically. This result survives when we consider more sophisticated measures of the mark-up. And this result is also supported by industry-level data. We find that the aggregate market sector profit share moves procyclically and that the cyclical behaviour of profit margins is largely homogenous across industries. Nevertheless, there is some evidence that margins moved against the cycle in the late 1990s, starting to fall in 1997, whereas GDP growth did not peak until 2000. In tandem with these cyclical movements, we also find that the market sector profit share has trended upwards since 1970, in contrast to the aggregate mark-up, which fell over the same period.

Labour's share of GDP in most OECD countries has declined over the last two decades. Some authors have suggested that these changes are linked to deregulation of product and labour markets. To examine this we focus on a large quasi-experiment in the OECD: the privatization of many network industries (e.g. telecommunications and utilities). We present a model with agency problems, imperfect product market competition and worker bargaining which makes clear predictions on how the labour share, employment and wages respond to privatization and other regulatory changes. We exploit cross-country panel data on several network industries and find that privatization can account for a significant proportion of the fall of labour's share (a fifth overall, but over half in Britain and France). The impact of privatization has been offset by falling barriers to entry, which consistent with theory, dampens profit margins.

Through all coverage survey and comparative analysis on VC funds in mainland China, some evidence findings are as follows in this paper. Firstly, these facts about the average size (number) and entrepreneurs (enterprise management teams) ownership percentage of firms' portfolios of VC funds invested in mainland China, are consistent with theorem in the VC literature. The portfolio firms' number or entrepreneurs' profit share of government-sponsored VC funds is higher than other funds in China, which is wholly consistent with theory proposition in the VC literature and the evidence in Canada. Secondly, entrepreneurs' ownership percentage is less obviously with no more than 40% equity compared with Western Countries. This might be related with the majority of VC engaged in similar PE business or the later stage of firms-invested in mainland China. Finally, holding periods of firms by the funds invested in mainland China, are even shorter than in Western Countries; Meanwhile, the ratios of seeds to total projects by all funds are simple arithmetic average of less than 5%. All these signal: VC in the traditional classic sense being the majority of similar PE business in mainland China.

This study explores the factors driving the observed movements of the profit share in several major industrialised countries (France, Germany, United States, United Kingdom and Japan) over the period 1970-2000. Within the group of countries we study, both the level and the fluctuations of the profit share strongly depend on the self employment correction. Due to long process of adjustment of the production factors and the real wage, the econometric long term corresponding to the span of the data appears to be too short to be considered as an economic long term. Within such a limited period, profit share could then be influenced by the real interest rate and also by external terms of trade shocks and keynesian disequilibriums on the goods or the labour markets.

We present a model of employee-firm interaction in which private intrapreneurial activity competes with the basic activity of the firm. The parent firm lacks ownership over any new asset created through intrapreneurial activity, but asset complementarity gives it an advantage over outsiders in the auction to develop the asset. We show that a firm might tolerate or even encourage intrapreneurial activity if the complementarity is high and the innovation environment is favourable. Contrary to intuition, higher complementarity may lead to lower innovation levels. We present some empirical evidence in support of the model's predictions - among a sample of publicly listed firms that are prolific spawners of new ventures, the profit share paid to the employee is negatively related to the level of intrapreneurship in the firm.

Discusses performance‐related pay schemes, highlighting their importance in stimulating individuals to higher levels of achievement. Explores how the engineer, the academic, the politician and the grocer′s daughter have all contributed to the present attitude towards reward and motivation. Outlines what exactly is rewarded and how, company‐wide profit share schemes are designed to promote greater acceptance of the profit motive and a climate of co‐operating and working together. Reviews six principles of reward and concludes with the views of the critics.

Profitability in the United States has been rising since the early 1980s and by 1997 was at its highest level since its postwar peak in the mid 1960s, and the profit share, by one definition, was at its highest point. In this paper I examine the role of the change in the profit share and capital intensity, as well as structural change, on movements in the rate of profit between 1947 and 1997. Its recent recovery is traced to a rise in the profit share in national income, a slowdown in capital-labor growth on the industry level, and employment shifts to relatively labor-intensive industries.

This paper investigates how Britain's largest employee-owned firm, the John Lewis Partnership, performs relative to its major competitors. In the context of John Lewis's unique constitutional structure, employee ownership appears to offer significant advantages in the market place. It is difficult to assess the relative importance of particular policies; as a group, employee ownership, open information flows, high wages, and profit share are clearly associated with high productivity.

The Georgia turkey industry is made up of a mixture of integrated producers, small independent producers and contract producers. The primary objective of this report was to present costs information relative to typical independent and contract turkey operations. An additional objective was to examine variations in costs due to variations in production levels and feed prices. Most of the data used in this analysis were obtained by personal interview from a random sample of turkey producers. Data were obtained on 1972 production of 89 flocks with a total volume of over one million turkeys. Budgetary procedures were used to budget costs and returns for average independent and contract operations and variability in costs was analyzed by production levels. Production costs were also estimated by allowing feed prices to change by $10 intervals from $90 to $200 per ton. Average production costs, excluding land and operator labor, for turkeys marketed by independent producers during 1972 were estimated at $0.2278 for 25.09-pound toms and $0.2178 for 14.77-pound hens. Average returns to land and labor were estimated for 25-pound tom turkeys marketed during 1972: (1) independent operations, $0.1807; (2) profit share contract, $0.2704 and (3) base pay and bonuses contract, $0.1656. These analyses show that differences in production cost were large enough to account for the success or failure of the turkey enterprise at 1972 turkey market prices.

Nearly all theoretical discussions of profit sharing to date have, following Weitzman, assumed that firms are monopolistic or monopolistically competitive. The present paper investigates the employment effects of a profit sharing scheme in a competitive environment. It is found that profit sharing can actually reduce employment in the long run, since the profit share may produce subnormal profits and exit of existing firms.

In financial world, lending money is a part of investment where the borrower get an opportunity to start up or enlarge their business, and as in the fair world, the lender should also take profits on the borrower's investment. In Islamic finance, the profit (and later also the loss) of an investment is coming from the profit-loss sharing concept. We proposed a mathematical model of micro-credit scheme based on this concept. The model is implemented onto real data taken from some low income Indonesian traders and the simulated one. We deliberately choose these respondents due to they are traditionally targeted by usurers (or rentenir in Indonesian) who lend money with high interest rate and penalties so, in many cases, it will makes them broke instead of having their business improve. The important issues in the model are how to generate the simulated data representing the real data, determination of required parameters and to find an optimal portion of profit share which is quite fair for the lender and the borrower. The model shows that the borrower will benefit from the scheme even though sometimes she has losses in particular days, and the lender will get good return as an investment return.

The principal owns a simple organization in which an agent supervises operatives. The agent chooses his/her own effort as well as the number of operatives to be hired. Operatives receive fixed wages and the agent a share of profits. In this model explicit solutions are given for the agent’s chosen effort and the agent’s optimal profit share. Increasing returns to scale lead to richer results than the constant returns to scale case.

In this chapter the primary focus of attention will be on the behaviour of the profit share and the rate of profit over the post-Second-World-War period in the UK and the USA, from a perspective provided by our previous analysis of the evolution of capitalism in an oligopoly world. Our analysis provides an explanation of the current crisis of capitalism which appears consistent with the evidence, and allows us to identify alternative strategies which will lead to a fuller employment of resources within the existing system, but with the inevitable reappearance of some fundamental contradictions.

The Gaskins and Vann (G and V) hypothesis assumes that information gained during joint-bidding negotiations is used to increase the chances of winning on other OCS lease tracts. A review of the G and V model concludes that it lacks empirical content and finds all competition to be equal. The trend of legislative and administrative events that began with the joint bidding ban continues with various unconventional techniques, such as royalty bidding and fixed-net profit share bidding. To the extent that these unconventional systems are meant to be mechanisms for correcting anticompetitive bidding abuses of the traditional bonus bid, the rejection of G and V's information hypothesis suggests that these new systems may be unnecessary. 21 references, 5 tables.