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Reducing Inequities Among Worker-Owned Cooperatives: A Proposal

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  • Robin Hahnel

    () (Department of Economics, American University. Center for Sustainable Processes and Practices, Portland State University. 3716 SE Woodstock Blvd, Portland, OR 97202, USA.)

Abstract

When worker-owned cooperatives trade goods and services at market prices they tend to reproduce differences in payments to members of more advantaged co-ops compared to members of less advantaged co-ops. Members of worker-owned cooperatives who believe this violates “cooperative principles” requiring that co-op members be compensated fairly could reduce inequities among co-ops by forming a cooperative mutual aid association which adopts redistributive pricing rules. This article proposes redistributive pricing rules that (1) reduce inequities among co-ops and (2) leave members of more advantaged co-ops absolutely better off, but (3) do not introduce inefficiencies in the distribution of capital among co-ops. Eastern Economic Journal (2009) 35, 174–189. doi:10.1057/eej.2008.10

Suggested Citation

  • Robin Hahnel, 2009. "Reducing Inequities Among Worker-Owned Cooperatives: A Proposal," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(2), pages 174-189.
  • Handle: RePEc:pal:easeco:v:35:y:2009:i:2:p:174-189
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