In this paper we analyze how the technology used by downstream firms can influence input and output market prices resulting from collusive agreements between some downstream and upstream firms. We show via an example that both these prices increase under a decreasing returns technology while the...

Cooperative owners have a transactional relationship - as customers or input suppliers - with their firm in addition to their investment relationship. This changes both the incentives and the information that owners have to monitor managerial performance. We argue that this difference reduces...

Alliance research has traditionally focused on structural and relational aspects of the networks in which firms are situated, paying less attention to the inherent characteristics of their partners. This study introduces the notion of alliance portfolio internationalization (API), which refers...

Cooperative banks are an important, and growing, part of many financial systems. This paper empirically analyzes the role of cooperative banks in financial stability. Contrary to some suggestions in the literature, we find that cooperative banks are more stable than commercial banks. This...

We examine firm profitability in mixed duopoly equilibrium with one labor-managed (LM) firm and one profit-maximizing (PM) firm, and with strategic investment. Conventional wisdom suggests that firms deviating from profit-maximization will suffer forced exit in the long run. We reverse this...

This paper proposes an econometric model for conditional forecasting of kibbutz financial distress for a range of one to three years. The primary interest in examining the economic performance of the kibbutz is that its driving characteristic is collective rather than individual...

In this paper we introduce and analyze a financial instrument, termed industry-average performance bonds (IAPB), that we show offers two important advantages for labor-managed firms (LMF): reduced underinvestment, and diminished quot;Illyrianquot; supply effects. These instruments commit the LMF...

This paper proposes an econometric model for conditional forecasting of kibbutz financial distress for a range of one to three years. Our sample covers financial and demographic data for about 32 kibbutzim over a seven year period (1990-1996). Data on an additional six kibbutzim over the same...