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:
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
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.
Document type
Monograph
(Working Paper)
Creators
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
Document type
Monograph
(Working Paper)
Creators
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
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