----------------- HES POSTING ----------------- In terms of old institutionslist work on stock market and asset prices, a great deal followed on from Veblen's discussion of stock valuations being based on profit expectations and on intangible assets rather than any physical or cost based valuation. A lot of this discussion was centered on issues of regulation of railways and utility companies, and the criticism of the Court's tendency to try to base regulated prices on the a "fair return on capital." As people such as Robert Hale and James Bonbright never tired of repeating, the argument was circular, as the rate set must affect the valuation of the company. Se Robert L. Hale, "The Physical Value Fallacy in Rate Cases" Yale Law Journal 30, 1921; and "Rate Making and the Revision of the Property Concept" Columbia Law Review, 22, 1932. James Bonbright, The Valuation of Property, 1937 James Bonbright and Gardiner Means, The Holding Company 1932 also relevant to the extension of Veblenian ideas on the corporation and stock markets are: Berle and Means, The Modern Corporation and Private Property 1932 William Ripley, Main Street and Wall Street, 1927 Malcolm Rutherford University of Victoria ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]