case of perfect competition, an outside owner achieves the first-best; a cooperative typically does not because the rent …'s preferences may not reflect average preferences. Second, in the case where the members of a cooperative have common preference …

distorts incentives. I assume that employment contracts are incomplete. In the model cooperative members pay in a capital … function of output. If the median member has less than average ability, the cooperative will vote for a redistributive schedule …, cooperative members will be reluctant to leave, since this entails forfeiting the dividends on their capital contribution. The …

overall catch quota to a voluntary cooperative, with the remainder exploited as a commons by those choosing to fish …