Efficient regulation of a labor managed monopolistic firm

M. Landsberger, A. Subotnik

Research output: Contribution to journalArticlepeer-review


Labor managed firms are known to be inefficient in two respects. They produce an output which is too small from the social point of view and this output is produced inefficiently. More specifically, labor managed firms overcapitalize. We suggest a regulatory measure to be implemented through a 'wage' control. This kind of regulation has the advantage that it forces the firm to increase output and to use a more efficient input mix.

Original languageEnglish
Pages (from-to)229-237
Number of pages9
JournalEuropean Economic Review
Issue number2
StatePublished - Mar 1980

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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