- Title
- Are co-operatives a viable business form? Lessons from behavioural economics
- Creator
- Altman, Morris
- Relation
- Co-Operatives in a Post-Growth Era: Creating Co-Operative Economics p. 176-193
- Relation
- https://www.zedbooks.net/shop/book/co-operatives-in-a-post-growth-era/
- Publisher
- Zed Books
- Resource Type
- book chapter
- Date
- 2014
- Description
- Behavioural economics can contribute to a better understanding of the relative success of co-operative businesses and point to the necessary conditions for success. Of particular importance to the co-operative advantage is the incentive environment in co-operative organisations that encourages relatively high levels of productivity and reduces the transaction costs of doing business. Conventional economic theory predicts that co-operatives should not prove as successful as the traditional hierarchically structured, investor-owned, profit-maximising firms because of the perverse incentives embedded in their organisational form. But the conventional economic modelling of the firm makes simplifying assumptions that assume away the importance of particular incentives and characteristics within the co-operative that can make co-operatives competitive and even more productive than investor-owned firms (Pérotin and Robinson 2004).
- Subject
- behavioural economics; co-operative businesses; co-op businesses; economics
- Identifier
- http://hdl.handle.net/1959.13/1354002
- Identifier
- uon:31173
- Identifier
- ISBN:9781783600793
- Language
- eng
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