Advanced Search
MyIDEAS: Login to save this paper or follow this series

Consumer Cooperatives as a new Governance Form: The Case of the Cooperatives in the Broadband Industry

Contents:

Author Info

  • Bert Sadowski

    ()

Registered author(s):

    Abstract

    Since Williamson’s semi-final paper (1975) on governance forms in a market economy, a growing number of studies have focused on new forms of governance, but research seems to have neglected consumer cooperatives despite their growing importance in some sectors of the economy. With an increasing emergence of consumer cooperatives in industries such as electricity generation or broadband telecommunications, however, there is a need to study the specific structure and function of consumer cooperatives in the market economy. In the literature, the growth of consumer cooperatives has been attributed to problems of market failure in conjunction with high risk and uncertain investment. In order to examine incentives for consumers to join a consumer cooperative, we make a distinction between different types of risks and benefits. The evolution of broadband markets in the Netherlands provides an interesting example to examine the function and structure of local cooperatives in a dynamic market. In the paper, we analyze the incentives of 759 consumers to opt in favor of setting up of a cooperative aimed at providing broadband services via a fiber network. We found that the risks associated with creating cost-efficiencies and switching cost are important determinants for consumers to join a cooperative. In addition, benefits expected from consumers with respect to user network externalities and indirect gains derived will affect the probability of consumers to join a cooperative.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://cms.tm.tue.nl/Ecis/Files/papers/wp2014/wp1403.pdf
    File Function: Version February 2014
    Download Restriction: no

    Bibliographic Info

    Paper provided by Eindhoven Center for Innovation Studies in its series Working Papers with number 14-03.

    as in new window
    Length:
    Date of creation: Feb 2014
    Date of revision: Feb 2014
    Handle: RePEc:ein:tuecis:1403

    Contact details of provider:
    Postal: Tema Building 1.40, PO Box 513, 5600 MB Eindhoven
    Phone: (+31) (0)40 247 5938
    Fax: (+31) (0)40 247 2607
    Web page: http://ecis.ieis.tue.nl/welcome
    More information through EDIRC

    Related research

    Keywords: cooperatives; broadband;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Mikami, Kazuhiko, 2010. "Capital procurement of a consumer cooperative: Role of the membership market," Economic Systems, Elsevier, vol. 34(2), pages 178-197, June.
    2. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
    3. Paul de Bijl & M. Peitz, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," CPB Discussion Paper 108, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Sadowski, Bert M. & Nucciarelli, Alberto & de Rooij, Marc, 0. "Providing incentives for private investment in municipal broadband networks: Evidence from the Netherlands," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 582-595, November.
    5. Bronwyn HOWELL & Arthur GRIMES, 2010. "Productivity Questions for Public Sector Fast Fibre Network Financiers," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 127-146, 2nd quart.
    6. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
    7. Paul Klemperer, 1987. "The Competitiveness of Markets with Switching Costs," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 138-150, Spring.
    8. Jeffrey Rohlfs, 1974. "A Theory of Interdependent Demand for a Communications Service," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 16-37, Spring.
    9. Rey, Patrick & Tirole, Jean, 2007. "Financing and Access in Cooperatives," IDEI Working Papers 404, Institut d'Économie Industrielle (IDEI), Toulouse.
    10. Huigen, Jos & Cave, Martin, 2008. "Regulation and the promotion of investment in next generation networks--A European dilemma," Telecommunications Policy, Elsevier, vol. 32(11), pages 713-721, December.
    11. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
    12. Mikami, Kazuhiko, 2003. "Market power and the form of enterprise: capitalist firms, worker-owned firms and consumer cooperatives," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 533-552, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ein:tuecis:1403. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carolina Castaldi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.