The book conducts a comparative study on the form of enterprise,
focusing on broadly defined cooperative firms in comparison with
conventional capitalist firms. It explores the essential advantages
and disadvantages of the different types of firms and attempts to
answer why capitalist firms are so prevalent in our economy.
The book attempts to explain these questions from the viewpoint
of "market failure" in the framework of standard microeconomic
theory. In this analytical framework, it proposes an alternative
system of business organization based upon consumer cooperatives
and the market for their memberships, which can coexist
consistently with the system of capitalist firms and the stock
market within a single market economy.
The existing studies of the cooperative sector have been rather
ideological. The analytical framework that is presented in this
book helps promote scientific exploration of cooperative and other
types of firms, which are indispensable and potentially promising
constituents of our society.
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