Are Workers Enterprises Entry Policies Conventional?
AbstractOne of the reasons why workers'enterprises (WE) still represent a relevant chunk of the economy may lay in some affinities with conventional profit maximizing firms. To provide a solid basis to this presumption, we compare the entry policies of WEs and conventional firms when size is set at entry and kept fixed afterwards. Even though short run differences remain between WEs and conventional firms, a long run coincidence appears in an uncertain dynamic environment. Endogenizing size and time of entry we see that the two kinds of firms enter at the same trigger market price and size. Both of them enter earlier and choose a dimension larger than the minimum efficient scale. This generalised coincidence may be another way to explain why WEs still make for an important share of the economy (Hesse and Cihàk, 2007) despite the ongoing mantra of their imminent demise.
Download InfoIf 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.
Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0066.
Length: 13 pages
Date of creation: 2008
Date of revision:
Workers' enterprises; entry; uncertainty; rigidity;
Other versions of this item:
- Michele Moretto & Gianpaolo Rossini, 2008. "Are Workers' Enterprises Entry Policies Conventional?," LABOUR, CEIS, vol. 22(2), pages 369-381, 06.
- M. Moretto & G. Rossini, 2007. "Are Workers' Enterprises entry policies conventional?," Working Papers 582, Dipartimento Scienze Economiche, Universita' di Bologna.
- Michele Moretto & Gianpaolo Rossini, 2007. "Are Workers. Enterprises Entry Policies Conventional," Working Papers 2007.31, Fondazione Eni Enrico Mattei.
- G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
- J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-04 (All new papers)
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.:
- Michele Moretto & Gianpaolo Rossini, .
"Start-up entry strategies: Employer vs. Nonemployer firms,"
ubs0409, University of Brescia, Department of Economics.
- Michele Moretto & Gianpaolo Rossini, 2005. "Start-up Entry Strategies: Employer vs. Nonemployer firms," Working Papers 2005.13, Fondazione Eni Enrico Mattei.
- R. Cellini & L. Lambertini, 2004.
"Workers' Enterprises Are Not Perverse: Differential Oligopoly Games with Sticky Price,"
531, Dipartimento Scienze Economiche, Universita' di Bologna.
- Roberto Cellini & Luca Lambertini, 2006. "Workers’ enterprises are not perverse: differential oligopoly games with sticky price," Review of Economic Design, Springer, vol. 10(3), pages 233-248, December.
- McDonald, Robert & Siegel, Daniel, 1986. "The Value of Waiting to Invest," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 707-27, November.
- Craig, Ben & Pencavel, John, 1992. "The Behavior of Worker Cooperatives: The Plywood Companies of the Pacific Northwest," American Economic Review, American Economic Association, vol. 82(5), pages 1083-105, December.
- Pestieau, P. & Thisse, J. -F., 1979. "On market imperfections and labor management," Economics Letters, Elsevier, vol. 3(4), pages 353-356.
- Martin CihÃ¡k & Heiko Hesse, 2007. "Cooperative Banks and Financial Stability," IMF Working Papers 07/2, International Monetary Fund.
- Leahy, John V, 1993. "Investment in Competitive Equilibrium: The Optimality of Myopic Behavior," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 1105-33, November.
- Steven R. Grenadier, 2002. "Option Exercise Games: An Application to the Equilibrium Investment Strategies of Firms," Review of Financial Studies, Society for Financial Studies, vol. 15(3), pages 691-721.
- Dixit, Avinash & Pindyck, Robert S & Sodal, Sigbjorn, 1999. "A Markup Interpretation of Optimal Investment Rules," Economic Journal, Royal Economic Society, vol. 109(455), pages 179-89, April.
- Sertel, Murat R., 1991. "Workers' enterprises in imperfect competition," Journal of Comparative Economics, Elsevier, vol. 15(4), pages 698-710, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabio Maria Manenti).
If references are entirely missing, you can add them using this form.