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Are Workers. Enterprises Entry Policies Conventional


  • Michele Moretto

    (University of Padova)

  • Gianpaolo Rossini

    (University of Bologna)


One of the main reasons why workers’ enterprises (WE) still represent a relevant chunk of the economy may lie in some affinities with conventional profit maximizing firms. To prove this, we compare the entry policies of WEs and conventional firms when they can decide size at entry while having to stick to it afterwards. Even though short run differences remain, a long run coincidence appears besides that under certainty. Endogenizing size and time of entry in an uncertain dynamic environment we see that WEs enter at the same trigger and size of conventional firms. Both of them wait less and choose a dimension larger than the minimum efficient scale. This may be another way to explain why WE are still an important share of the economy (Hesse and Cihàk, 2007) despite the ongoing mantra of their imminent demise.

Suggested Citation

  • Michele Moretto & Gianpaolo Rossini, 2007. "Are Workers. Enterprises Entry Policies Conventional," Working Papers 2007.31, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2007.31

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    References listed on IDEAS

    1. 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 1083-1105, December.
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    8. Martin Cihak & Heiko Hesse, 2007. "Cooperative Banks and Financial Stability," IMF Working Papers 07/2, International Monetary Fund.
    9. Michele Moretto & Gianpaolo Rossini, "undated". "Start-up entry strategies: Employer vs. Nonemployer firms," Working Papers ubs0409, University of Brescia, Department of Economics.
    10. John V. Leahy, 1993. "Investment in Competitive Equilibrium: The Optimality of Myopic Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 108(4), pages 1105-1133.
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    More about this item


    Workers’ Enterprises; Entry; Uncertainty; Rigidity;

    JEL classification:

    • 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

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