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Collective Choice and Control Rights in Firms

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Author Info
Dow, G.K.
Skillman, G.L.

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Abstract

Because contracts among input suppliers are incomplete, it is necessary to assign rights to determine the policies of the firm. Two leading contenders for such control rights are investors and workers. Large enterprises are generally controlled by capital suppliers or their agents. We trace this pattern to an underlying asymmetry in the characteristics of capital and labor.

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Publisher Info
Paper provided by Department of Economics, Simon Fraser University in its series Discussion Papers with number dp98-08.

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Length: 40 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:sfu:sfudps:dp98-08

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Postal: Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
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Web page: http://www.econ.sfu.ca/
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Postal: Working Paper Coordinator, Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada
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Related research
Keywords: CAPITAL ; OPTIMIZATION ; SOCIAL CHOICE;

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Find related papers by JEL classification:
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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.:

  1. Dreze, Jacques H & Hagen, Kare P, 1978. "Choice of Product Quality: Equilibrium and Efficiency," Econometrica, Econometric Society, vol. 46(3), pages 493-513, May. [Downloadable!] (restricted)
  2. Dow, Gregory K., 1986. "Control rights, competitive markets, and the labor management debate," Journal of Comparative Economics, Elsevier, vol. 10(1), pages 48-61, March. [Downloadable!] (restricted)
  3. Kramer, Gerald H, 1973. "On a Class of Equilibrium Conditions for Majority Rule," Econometrica, Econometric Society, vol. 41(2), pages 285-97, March. [Downloadable!] (restricted)
  4. Hart, Oliver D, 1979. "On Shareholder Unanimity in Large Stock Market Economies," Econometrica, Econometric Society, vol. 47(5), pages 1057-83, September. [Downloadable!] (restricted)
  5. Makowski, Louis, 1983. "Competitive Stock Markets," Review of Economic Studies, Blackwell Publishing, vol. 50(2), pages 305-30, April. [Downloadable!] (restricted)
  6. Chris Doucouliagos, 1995. "Worker participation and productivity in labor-managed and participatory capitalist firms: A meta-analysis," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(1), pages 58-77, October.
  7. Sadanand, Asha B & Williamson, John M, 1991. "Equilibrium in a Stock Market Economy with Shareholder Voting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 1-35, February. [Downloadable!] (restricted)
  8. Gregory Dow, 1996. "Replicating Walrasian equilibria using markets for membership in labor-managed firms," Review of Economic Design, Springer, vol. 2(1), pages 147-162, December. [Downloadable!] (restricted)
  9. Michael Magill & Martine Quinzii, 2002. "Theory of Incomplete Markets, Volume 1," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262632543.
  10. Hart, Oliver D, 1979. "Monopolistic Competition in a Large Economy with Differentiated Commodities," Review of Economic Studies, Blackwell Publishing, vol. 46(1), pages 1-30, January. [Downloadable!] (restricted)
  11. Makowski, Louis & Pepall, Lynne, 1985. " Easy Proofs of Unanimity and Optimality without Spanning: A Pedagogical Note," Journal of Finance, American Finance Association, vol. 40(4), pages 1245-50, September. [Downloadable!] (restricted)
  12. McKelvey, Richard D, 1979. "General Conditions for Global Intransitivities in Formal Voting Models," Econometrica, Econometric Society, vol. 47(5), pages 1085-1112, September. [Downloadable!] (restricted)
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