Are Workers' Enterprises entry policies conventional?

Moretto, Michele ; Rossini, Gianpaolo (2007) Are Workers' Enterprises entry policies conventional? Bologna: Dipartimento di Scienze economiche DSE, DOI 10.6092/unibo/amsacta/4702. In: Quaderni - Working Paper DSE (582). ISSN 2282-6483.
Full text available as:
[img]
Preview
Text(pdf)
License: Creative Commons Attribution

Download (142kB) | Preview

Abstract

One of the main reasons why workers’ enterprises (WE) still represent a relevant chunk of the economy may lay 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.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Moretto, Michele
Rossini, Gianpaolo
Keywords
Workers’ enterprises, entry, uncertainty, rigidity
Subjects
ISSN
2282-6483
DOI
Deposit date
26 Feb 2016 12:37
Last modified
26 Feb 2016 12:37
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^