Explaining Cooperative Enterprises through Knowledge Acquisition Outcomes
Article first published online: 27 DEC 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Special Issue: Governance of Franchising Networks, Cooperatives and Alliances
Volume 34, Issue 3-5, pages 258–271, April-July 2013
How to Cite
Dietl, H. M., Duschl, T., Grossmann, M. and Lang, M. (2013), Explaining Cooperative Enterprises through Knowledge Acquisition Outcomes. Manage. Decis. Econ., 34: 258–271. doi: 10.1002/mde.2588
- Issue published online: 8 APR 2013
- Article first published online: 27 DEC 2012
This paper develops a model of a cooperative enterprise and compares it to a vertically separated market. In our model of a multi-stage production process, agents can acquire costly knowledge to decrease production costs. Our model shows that the cooperative acquires less non-generalizable knowledge than the market, but more generalizable knowledge if the large member in the cooperative receives a sufficiently large share of the cooperative's profits. Additionally, we derive that the cooperative generates larger aggregate surplus than the market if the influence of generalizable knowledge on production costs is large. Copyright © 2012 John Wiley & Sons, Ltd.