TY - JOUR
T1 - Allocative and distributional effects of a monopolistic cooperative firm in a capitalist economy
AU - Gal-Or, Esther
AU - Landsberger, Michael
AU - Subotnik, Abraham
PY - 1980/6
Y1 - 1980/6
N2 - It is well known that labor-managed firms operating under socialism exhibit "bizarre" behavior with respect to their production strategy. We prove that under capitalism most of these distortions disappear, consequently, the production strategies of an entrepreneurial monopoly and of the labor-managed firm become indistinguishable. However, there appears an almost inherent instability in the distribution of profits. The degree of instability depends on the existence of some sort of supportive legislation. Thus, unlike under socialism, in a capitalistic economy the labor-managed firm may have an effect on the distribution of profits at most.
AB - It is well known that labor-managed firms operating under socialism exhibit "bizarre" behavior with respect to their production strategy. We prove that under capitalism most of these distortions disappear, consequently, the production strategies of an entrepreneurial monopoly and of the labor-managed firm become indistinguishable. However, there appears an almost inherent instability in the distribution of profits. The degree of instability depends on the existence of some sort of supportive legislation. Thus, unlike under socialism, in a capitalistic economy the labor-managed firm may have an effect on the distribution of profits at most.
UR - http://www.scopus.com/inward/record.url?scp=19544364928&partnerID=8YFLogxK
U2 - 10.1016/0147-5967(80)90026-8
DO - 10.1016/0147-5967(80)90026-8
M3 - Article
AN - SCOPUS:19544364928
SN - 0147-5967
VL - 4
SP - 158
EP - 172
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
IS - 2
ER -