Economies of Cooperation

1 Pages Posted: 12 Oct 2007

Date Written: October 10, 2007


The nature of mankind inherently possesses cooperation. It seeks cooperation of others and so he extends cooperation in exchange. The purpose of exchanging cooperation is to compliment own shortfalls; may be personal, social, economical, political or otherwise. If cooperation is mutual, it is obviously frictionless, and hence more effective. Cooperation compliment shortfalls of each other, and hence it is beneficial to each one. Cooperation combine resources, and hence economies of scale is achieved to benefit overall efficiency. Except solar system, all system depends (at some point of time) on others, or say they are open to an extent. Each one is depending upon others. Hence cooperation is necessity. The objective of this abstract is to see to what an extent cooperation is desirable? There are certain restrictions of cooperation. It is difficult to identify exact shortfall of each one, and similarly to find the complimenting surplus. Matching is complex task on one hand, then to coordinate big mass involves cost. One has to judge whether benefit exceeds of cooperation over cost in combining them? Growth is restricted if there is no competition. Competition enhances capacity. Modern economic appreciate compete and cooperate. This paper would like to invite discussion and thereby building models to determine extent of cooperation to optimize overall activity. Here word 'cooperation' has wide connotation, and is not restricted to only formal cooperatives, but includes informal groups of any nature. We assume, that group of people if combine for some common objective and to help each other, without any political recognition or not will be part of this discussion. Again, cooperative organizations are for business purpose, our horizon extends to cooperation in non-business ventures for social, political, personal or any other constructive purpose. We invite your comments and contribution to build a public forum, to create, carry out and maintain research activities in the field of cooperation. Intention is to make 'cooperation' a global phenomenon with local flavor, or in the words of Brazilian president, think globally - act locally. Cooperation sustains on mutual trust. How to build an environment conducive to this is a big challenge. Competition on the other hand, an antonym to cooperation is born by virtue of taking winning edge over others. This study therefore seeks wide range of experience, suggestion, models and actions.

Keywords: Economies, Cooperation, Cooperative

JEL Classification: C71, J54, P13, Q1

Suggested Citation

Sapovadia, Vrajlal K., Economies of Cooperation (October 10, 2007). Available at SSRN: or

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