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Freedom of Choice in the Production Sphere: The Capitalist and the Self-managed Firm

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  • Ernesto Screpanti

Abstract

A formula for measuring freedom of choice in the production sphere is proposed. Then a capitalist firm and a worker self-managed firm are compared in terms of freedom distribution. It is shown that the workers have little freedom, if any at all, in a capitalist firm, whilst the capitalist enjoys a great deal of freedom. In a self-managed firm, on the other hand, the amount of freedom enjoyed by the workers is positive and often even greater than that of the capitalist. The analysis is further developed by the introduction of asymmetric information. It is argued that, based on plausible hypotheses of monitoring costs, the difference between the amount of freedom enjoyed by self-managed workers and that enjoyed by the capitalist increases.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.561562
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Review of Political Economy.

Volume (Year): 23 (2011)
Issue (Month): 2 ()
Pages: 267-279

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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:267-279

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Cited by:
  1. Erkan G├╝rpinar, 2013. "Notes on Institutional Complementarities and Organizational Forms," Department of Economics University of Siena 678, Department of Economics, University of Siena.

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