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The Microeconomics of Conflict and Hierarchy in Capitalist Production

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  • Michael Reich
  • James Devine

Abstract

This paper develops a formal model of worker-employer relations within capitalist firms. The results illuminate the effects of property rela tions on the organization of work, the monitoring of workers, the extent of wage hierarchies and incentives and inefficiencies in such firms. A comparison model of a workers' cooperative demonstrates that the nature of the political-economic system, not just technology or information and transaction costs, affects produc tion conditions.

Suggested Citation

  • Michael Reich & James Devine, 1981. "The Microeconomics of Conflict and Hierarchy in Capitalist Production," Review of Radical Political Economics, Union for Radical Political Economics, vol. 12(4), pages 27-45, January.
    • Handle: RePEc:sae:reorpe:v:12:y:1981:i:4:p:27-45
    DOI: 10.1177/048661348101200402
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    References listed on IDEAS

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    6. Oliver E. Williamson & Michael L. Wachter & Jeffrey E. Harris, 1975. "Understanding the Employment Relation: The Analysis of Idiosyncratic Exchange," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 250-278, Spring.
    7. George Akerlof, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 599-617.
    8. Duncan, Greg J & Stafford, Frank P, 1980. "Do Union Members Receive Compensating Wage Differentials?," American Economic Review, American Economic Association, vol. 70(3), pages 355-371, June.
    9. Herbert Gintis & Herbert Gintis, 1976. "The Nature of Labor Exchange and the Theory of Capitalist Production," Review of Radical Political Economics, Union for Radical Political Economics, vol. 8(2), pages 36-54, July.
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    Cited by:

    1. Spencer, David A, 2000. "The Demise of Radical Political Economics? An Essay on the Evolution of a Theory of Capitalist Production," Cambridge Journal of Economics, Oxford University Press, vol. 24(5), pages 543-564, September.

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