The Contributions of Behavioural Economics to Understanding and Advancing the Sustainability of Worker Cooperatives

26 Pages Posted: 21 Aug 2013

See all articles by Avner Ben-Ner

Avner Ben-Ner

University of Minnesota - Twin Cities - Carlson School of Management

Matthew Ellman

Institut d'Anàlisi Econòmica (CSIC); Barcelona Graduate School of Economics (Barcelona GSE)

Date Written: August 14, 2013

Abstract

We characterize how just-selfish workers are incompatible with long-run success in workers’ cooperatives. Emphasizing mutual monitoring as key to cooperatives’ organization design to combat “shirking” we discuss what possible mixes of behavioral types in the membership of a cooperative are compatible with sustainable success. Sustainability depends on social preferences and cooperative norms that are compatible with low levels of shirking and high levels of mutual monitoring. When worker types are partly unobservable, cooperatives must be more attractive to the types of workers they value most as members. We describe measures that enhance cooperative forms and measures that mitigate adverse selection.

Keywords: cooperative enterprises

JEL Classification: D02, D03, J54, M5

Suggested Citation

Ben-Ner, Avner and Ellman, Matthew, The Contributions of Behavioural Economics to Understanding and Advancing the Sustainability of Worker Cooperatives (August 14, 2013). Journal of Entrepreneurial and Organizational Diversity, Vol. 2 , No. 1, pp. 75-100, 2013, Available at SSRN: https://ssrn.com/abstract=2312362

Avner Ben-Ner

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Matthew Ellman (Contact Author)

Institut d'Anàlisi Econòmica (CSIC) ( email )

UAB Campus
IAE-CSIC
E-08193 Bellaterra, Barcelona 08193
Spain
0034935806612 (Phone)

Barcelona Graduate School of Economics (Barcelona GSE) ( email )

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

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