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Beyond Illyria: Workers' Firm in Mixed Oligopoly

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Listed:
  • Flavio Delbono
  • Diego Lanzi
  • Carlo Reggiani

Abstract

We rationalize several facts emerging from the recent empirical research on cooperatives owned by workers (workers firms, WF) as: the concern of WFs for employment; the interplay between membership and workplace safeguard within WFs; the different reaction to shocks between WFs and profit-making firms. We do so by means of a new model of WFs short-run behavior in mixed duopoly. We consider an industry in which a WF competes with a profit maximizing company and we innovate with respect to the conventional Illyrian objective function. We then reconcile the literature on labor-concerned maximands in competitive markets and the one dealing with WFs in oligopolistic markets under the Illyrian maximand.

Suggested Citation

  • Flavio Delbono & Diego Lanzi & Carlo Reggiani, 2022. "Beyond Illyria: Workers' Firm in Mixed Oligopoly," Working Papers wp1170, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:wp1170
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    References listed on IDEAS

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    1. Cecilia NAVARRA, 2016. "Employment Stabilization Inside Firms: An Empirical Investigation Of Worker Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(4), pages 563-585, December.
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    5. Guido Caselli & Michele Costa & Flavio Delbono, 2022. "What do cooperative firms maximize, if at all? Evidence from Emilia‐Romagna in the pre‐Covid decade," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 821-847, December.
    6. Bonin, John P & Jones, Derek C & Putterman, Louis, 1993. "Theoretical and Empirical Studies of Producer Cooperatives: Will Ever the Twain Meet?," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1290-1320, September.
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    12. Miyamoto, Yoshinari, 1982. "A Labour-Managed Firm's Reaction Function Reconsidered," The Warwick Economics Research Paper Series (TWERPS) 218, University of Warwick, Department of Economics.
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    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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