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Workers' enterprises in the case of arts production

Author

Listed:
  • Cuccia, Tiziana
  • Cellini, Roberto

Abstract

This paper shows that the standard result according to which labour-managed firms produce a lower amount of output, as compared to profit-maximising firms, is reversed if production per se gives utility and the workers’ membership of labour-managed firms is set prior to market decisions. Under the same hypotheses, the labour-managed firms set a higher product quality than the profit-oriented ones, ceteris paribus. The considered hypotheses are particularly relevant for the case of the performing arts sector, so that the presence of labour-managed firms should be particularly welcomed in this sector.

Suggested Citation

  • Cuccia, Tiziana & Cellini, Roberto, 2007. "Workers' enterprises in the case of arts production," MPRA Paper 5192, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5192
    as

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    File URL: https://mpra.ub.uni-muenchen.de/5192/1/MPRA_paper_5192.pdf
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    References listed on IDEAS

    as
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    4. Glazer, Amihai, 2004. "Motivating devoted workers," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 427-440, March.
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    7. Hill, Martyn & Waterson, Michael, 1983. "Labor-managed Cournot oligopoly and industry output," Journal of Comparative Economics, Elsevier, vol. 7(1), pages 43-51, March.
    8. 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.
    9. Lambertini, Luca & Rossini, Gianpaolo, 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.
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    11. Vickers, John, 1985. "Delegation and the Theory of the Firm," Economic Journal, Royal Economic Society, vol. 95(380a), pages 138-147, Supplemen.
    12. 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.
    13. 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.
    14. Lambertini, Luca, 1997. "On the provision of product quality by a labor-managed monopolist," Economics Letters, Elsevier, vol. 55(2), pages 279-283, August.
    15. 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.
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    17. 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.
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    19. 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.
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    More about this item

    Keywords

    workers'enterprises; labour managed firms; arts;

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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