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WORKERS' ENTERPRISES AND THE TASTE FOR PRODUCTION: THE ARTS, SPORT AND OTHER CASES

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ABSTRACT

This paper shows that the standard result according to which labour-managed (LM) firms produce a lower amount of output, as compared with profit-maximizing firms, is reversed if production per se gives utility and the workers' membership of LM firms is set before market decisions. Under the same hypotheses, the LM firms set a higher product quality than the profit-oriented ones, ceteris paribus. The considered hypotheses are appropriate in several sectors, but they are particularly relevant in the case of the performing arts.

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