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Capitalist firm vis-a-vis trade union, versus producer cooperative

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  • Istvan R. Gabor

    ()
    (Department of Human Resources, Corvinus University of Budapest)

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    Abstract

    By way of presenting an ahistorical fictitious story, this paper is ment to illustrate that: - in contrast to conventional wisdom, trade unions, in their symbiosis with capitalist firms, may further rather than impede price-mediated self-regulation in the labour market via their involvement in wagesetting, - whereas producer co-operatives, although they might seem to represent a close collateral of fully unionized capitalist firms, are fundamentally at variance with the logic of market self-regulation, in that they tend to respond to an increase in demand by restraining rather than extending supply, - with the consequence that they cannot even in principle be an alternative to capitalist firms, at least on a mass scale, unless combined with the adoption of some kind of bureaucratic price control.

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    File URL: http://www.econ.core.hu/doc/bwp/bwp/Bwp0405.pdf
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    Bibliographic Info

    Paper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number 0405.

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    Length: 25 pages
    Date of creation: Sep 2004
    Date of revision:
    Handle: RePEc:has:bworkp:0405

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