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The (Ir)Relevance of the Cooperative Form

Author

Listed:
  • Tirole, Jean
  • Moisson, Paul-Henri
  • Dubois, Pierre

Abstract

It is puzzling that cooperatives, which stand for the interests of their users, do not occupy more space in the market for corporate forms. This paper unveils a new impediment to their formation. It shows that equilibrium free-riding handicaps cooperatives in their competition with alternative institutions, notably the for-profits. The irrelevance of cooperatives is a remarkably robust result. The paper then analyzes desirable government interventions in the corporate market.

Suggested Citation

  • Tirole, Jean & Moisson, Paul-Henri & Dubois, Pierre, 2023. "The (Ir)Relevance of the Cooperative Form," TSE Working Papers 23-1453, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:128186
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cooperatives; free-riding; competing corporate forms;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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