IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v56y2009i1p123-137.html
   My bibliography  Save this article

Workers' Enterprises And The Taste For Production: The Arts, Sport And Other Cases

Author

Listed:
  • Tiziana Cuccia
  • Roberto Cellini

Abstract

This paper shows that the standard result according to which labour‐managed (LM) firms produce a lower amount of output, as compared with profit‐maximizing firms, is reversed if production per se gives utility and the workers' membership of LM firms is set before market decisions. Under the same hypotheses, the LM firms set a higher product quality than the profit‐oriented ones, ceteris paribus. The considered hypotheses are appropriate in several sectors, but they are particularly relevant in the case of the performing arts.

Suggested Citation

  • Tiziana Cuccia & Roberto Cellini, 2009. "Workers' Enterprises And The Taste For Production: The Arts, Sport And Other Cases," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(1), pages 123-137, February.
    • Handle: RePEc:bla:scotjp:v:56:y:2009:i:1:p:123-137
    DOI: 10.1111/j.1467-9485.2009.00476.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9485.2009.00476.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9485.2009.00476.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    2. Francois, Patrick, 2000. "'Public service motivation' as an argument for government provision," Journal of Public Economics, Elsevier, vol. 78(3), pages 275-299, November.
    3. Saul ESTRIN, 1991. "Privatization In Central And Eastern Europe," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 62(2), pages 159-183, April.
    4. Rossini, Gianpaolo, 2005. "Outsourcing with labor management," Economic Systems, Elsevier, vol. 29(4), pages 455-466, December.
    5. Luca Lambertini, 1998. "Process innovation and the persistence of monopoly with labour-managed firms," Review of Economic Design, Springer;Society for Economic Design, vol. 3(4), pages 359-369.
    6. Henry Hansmann, 1981. "Nonprofit Enterprise in the Performing Arts," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 341-361, Autumn.
    7. Lambertini, Luca, 1997. "On the provision of product quality by a labor-managed monopolist," Economics Letters, Elsevier, vol. 55(2), pages 279-283, August.
    8. Gary Gorton & Frank Schmid, 2000. "Class Struggle Inside the Firm: A Study of German Codetermination," Center for Financial Institutions Working Papers 00-36, Wharton School Center for Financial Institutions, University of Pennsylvania.
    9. Futagami, Koichi & Okamura, Makoto, 1996. "Strategic Investment: The Labor-Managed Firm and the Profit-Maximizing Firm," Journal of Comparative Economics, Elsevier, vol. 23(1), pages 73-91, August.
    10. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    11. Pencavel, John & Craig, Ben, 1994. "The Empirical Performance of Orthodox Models of the Firm: Conventional Firms and Worker Cooperatives," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 718-744, August.
    12. Glazer, Amihai, 2004. "Motivating devoted workers," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 427-440, March.
    13. Throsby, David, 1994. "The Production and Consumption of the Arts: A View of Cultural Economics," Journal of Economic Literature, American Economic Association, vol. 32(1), pages 1-29, March.
    14. Edward Oczkowski, 2006. "Nash Bargaining And Co‐Operatives," Australian Economic Papers, Wiley Blackwell, vol. 45(2), pages 89-98, June.
    15. Patrick Francois, 2003. "Not-For-Profit Provision of Public Services," Economic Journal, Royal Economic Society, vol. 113(486), pages 53-61, March.
    16. 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.
    17. repec:bla:scotjp:v:47:y:2000:i:4:p:364-98 is not listed on IDEAS
    18. Sertel, Murat R., 1991. "Workers' enterprises in imperfect competition," Journal of Comparative Economics, Elsevier, vol. 15(4), pages 698-710, December.
    19. Gregory Dow, 1996. "Replicating Walrasian equilibria using markets for membership in labor-managed firms," Review of Economic Design, Springer;Society for Economic Design, vol. 2(1), pages 147-162, December.
    20. Maurizio Caserta & Tiziana Cuccia, 2001. "The Supply of Arts Labour : Towards a Dynamic Approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 25(3), pages 185-201, August.
    21. 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.
    22. Meade, James E, 1972. "The Theory of Labour-Managed Firms and of Profit Sharing," Economic Journal, Royal Economic Society, vol. 82(325), pages 402-428, Supplemen.
    23. Hill, Martyn & Waterson, Michael, 1983. "Labor-managed Cournot oligopoly and industry output," Journal of Comparative Economics, Elsevier, vol. 7(1), pages 43-51, March.
    24. Bruno S. Frey & Margit Osterloh, "undated". "Yes, Managers Should be Paid Like Bureaucrats," IEW - Working Papers 187, Institute for Empirical Research in Economics - University of Zurich.
    25. Cremer, Helmuth & Cremer, Jacques, 1992. "Duopoly with employee-controlled and profit-maximizing firms: Bertrand vs Cournot competition," Journal of Comparative Economics, Elsevier, vol. 16(2), pages 241-258, June.
    26. John Vrooman, 2007. "Economics Of Sport: Editor'S Introduction," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 309-313, July.
    27. John Vrooman, 2000. "The Economics of American Sports Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 364-398, September.
    28. Luca Lambertini & Gianpaolo Rossini, 1998. "Capital Commitment and Cournot Competition with Labour‐managed and Profit‐maximising Firms," Australian Economic Papers, Wiley Blackwell, vol. 37(1), pages 14-21, March.
    29. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    30. Michael Kremer, 1997. "Why are Worker Cooperatives So Rare?," NBER Working Papers 6118, National Bureau of Economic Research, Inc.
    31. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
    32. Franco Papandrea & Robert Albon, 2004. "A Model of Employment in the Arts," Australian Economic Papers, Wiley Blackwell, vol. 43(3), pages 277-287, September.
    33. Masahiko Aoki & Hirokazu Takizuwa, 2013. "Information, Incentives, and Option Value: The Silicon Valley Model," Chapters, in: Comparative Institutional Analysis, chapter 7, pages 72-104, Edward Elgar Publishing.
    34. Martin, Robert E., 1986. "Quality choice under labor-management," Journal of Comparative Economics, Elsevier, vol. 10(4), pages 400-413, December.
    35. Melanie E. Ward & Peter J. Sloane, 2000. "Non‐pecuniary Advantages Versus Pecuniary Disadvantages; Job Satisfaction Among Male And Female Academics In Scottish Universities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(3), pages 273-303, August.
    36. Vickers, John, 1985. "Delegation and the Theory of the Firm," Economic Journal, Royal Economic Society, vol. 95(380a), pages 138-147, Supplemen.
    37. Ben Craig & John Pencavel, 1995. "Participation and Productiviy: A Comparison of Worker Cooperatives and Conventional Firms in the Plywood Industry," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995 Micr), pages 121-174.
    38. Roberto Cellini & Tiziana Cuccia, 2003. "Le peculiarità delle imprese cooperative nel settore dell’arte. Un’analisi teorica," Rivista di Politica Economica, SIPI Spa, vol. 93(3), pages 35-66, May-June.
    39. Fehr, Ernst & Sertel, Murat R., 1993. "Two forms of workers' enterprises facing imperfect labor markets," Economics Letters, Elsevier, vol. 41(2), pages 121-127.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kazuhiro Ohnishi, 2013. "A Two-production-period Model with State-owned and Labour-managed Firms," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 41-56, April.
    2. Ohnishi, Kazuhiro, 2018. "Wage-Rise Contract and Labour-Managed Cournot Oligopoly with Complementary Goods," MPRA Paper 88235, University Library of Munich, Germany.
    3. Kazuhiro Ohnishi, 2022. "Lifetime Employment and Stackelberg Mixed Duopoly Games with a Foreign Labour-Managed Competitor," Arthaniti: Journal of Economic Theory and Practice, , vol. 21(1), pages 27-42, June.
    4. Cellini, Roberto & Cuccia, Tiziana, 2014. "The artist–art dealer relationship as a marketing channel," Research in Economics, Elsevier, vol. 68(1), pages 57-69.
    5. Cellini, Roberto & Martorana, Marco Ferdinando & Platania, Felicita, 2014. "The multi-product nature of the firm in the arts sector: A case study on ‘Centro Zo’," MPRA Paper 60677, University Library of Munich, Germany.
    6. Ohnishi, Kazuhiro, 2019. "Capacity choice in an international mixed triopoly," MPRA Paper 94051, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cuccia, Tiziana & Cellini, Roberto, 2007. "Workers' enterprises in the case of arts production," MPRA Paper 5192, University Library of Munich, Germany.
    2. Roberto Cellini & Luca Lambertini, 2006. "Workers’ enterprises are not perverse: differential oligopoly games with sticky price," Review of Economic Design, Springer;Society for Economic Design, vol. 10(3), pages 233-248, December.
    3. Dow,Gregory K., 2019. "The Labor-Managed Firm," Cambridge Books, Cambridge University Press, number 9781107589650, October.
    4. Gregory Dow, 2001. "Allocating Control over Firms: Stock Markets versus Membership Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(2), pages 201-218, March.
    5. Gregory K. DOW, 2018. "The Theory Of The Labor-Managed Firm: Past, Present, And Future," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 65-86, March.
    6. Ann Horowitz & Ira Horowitz, 1999. "Quality choice: Does it matter which workers own and manage the cooperative firm?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(4), pages 394-409, December.
    7. repec:bla:annpce:v:89:y:2018:i:1:p:65-86 is not listed on IDEAS
    8. Bennett, John & Estrin, Saul & Hare, Paul, 1999. "Output and Exports in Transition Economies: A Labor Management Model," Journal of Comparative Economics, Elsevier, vol. 27(2), pages 295-317, June.
    9. Louis Putterman, 2006. "Labor-Managed Firms," Working Papers 2006-18, Brown University, Department of Economics.
    10. Mikami, Kazuhiko, 2018. "Are cooperative firms a less competitive form of business? Production efficiency and financial viability of cooperative firms with tradable membership shares," Economic Systems, Elsevier, vol. 42(3), pages 487-502.
    11. Gregory Dow, 1996. "Replicating Walrasian equilibria using markets for membership in labor-managed firms," Review of Economic Design, Springer;Society for Economic Design, vol. 2(1), pages 147-162, December.
    12. Gabriel Burdín, 2016. "Equality Under Threat by the Talented: Evidence from Worker‐Managed Firms," Economic Journal, Royal Economic Society, vol. 126(594), pages 1372-1403, August.
    13. Hart, Oliver & Moore, John, 1998. "Cooperatives vs. outside ownership," LSE Research Online Documents on Economics 19360, London School of Economics and Political Science, LSE Library.
    14. Marina Albanese & Cecilia Navarra & Ermanno Tortia, 2019. "Equilibrium unemployment as a worker insurance device: wage setting in worker owned enterprises," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 653-671, October.
    15. Burdín, Gabriel & Dean, Andrés, 2012. "Revisiting the objectives of worker-managed firms: An empirical assessment," Economic Systems, Elsevier, vol. 36(1), pages 158-171.
    16. Albanese, Marina & Navarra, Cecilia & Tortia, Ermanno C., 2015. "Employer moral hazard and wage rigidity. The case of worker owned and investor owned firms," International Review of Law and Economics, Elsevier, vol. 43(C), pages 227-237.
    17. Ohnishi, Kazuhiro, 2011. "Lifetime employment contract and reaction functions of profit-maximizing and labor-managed firms," Research in Economics, Elsevier, vol. 65(3), pages 152-157, September.
    18. Kazuhiro Ohnishi, 2022. "Lifetime Employment and Stackelberg Mixed Duopoly Games with a Foreign Labour-Managed Competitor," Arthaniti: Journal of Economic Theory and Practice, , vol. 21(1), pages 27-42, June.
    19. Delbono, Flavio & Lanzi, Diego & Reggiani, Carlo, 2023. "Workers’ firm in mixed duopoly," Economic Modelling, Elsevier, vol. 122(C).
    20. Ohnishi, Kazuhiro, 2018. "Wage-Rise Contract and Labour-Managed Cournot Oligopoly with Complementary Goods," MPRA Paper 88235, University Library of Munich, Germany.
    21. Cecilia Navarra & Ermanno Tortia, 2014. "Employer Moral Hazard, Wage Rigidity, and Worker Cooperatives: A Theoretical Appraisal," Journal of Economic Issues, Taylor & Francis Journals, vol. 48(3), pages 707-726.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:56:y:2009:i:1:p:123-137. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sesssea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.