On the sale of production rights and firm organization
On the sale of production rights and firm organization
It is argued that the owner of production rights may not be indifferent across organizational structures of producers. In particular, the owner may prefer to grant some or all of the rights to labor-managed firms. The reason is that such firms adopt a less competitive strategy and so generate more industry rent, which the owner can capture as fee payments. A mixed duopoly may be particularly attractive. The conflict between revenue-raising and the pursuit of efficiency as objectives of government privatization programs is highlighted, and the relevance to East European reform discussed.
289-307
Ireland, Norman J.
e556f659-d13f-4a90-9d6b-b815d4c6de2f
Stewart, Geoff
a94573f3-bb92-416f-ba18-3c6272224d18
December 1995
Ireland, Norman J.
e556f659-d13f-4a90-9d6b-b815d4c6de2f
Stewart, Geoff
a94573f3-bb92-416f-ba18-3c6272224d18
Ireland, Norman J. and Stewart, Geoff
(1995)
On the sale of production rights and firm organization.
Journal of Comparative Economics, 21 (3), .
(doi:10.1006/jcec.1995.0002).
Abstract
It is argued that the owner of production rights may not be indifferent across organizational structures of producers. In particular, the owner may prefer to grant some or all of the rights to labor-managed firms. The reason is that such firms adopt a less competitive strategy and so generate more industry rent, which the owner can capture as fee payments. A mixed duopoly may be particularly attractive. The conflict between revenue-raising and the pursuit of efficiency as objectives of government privatization programs is highlighted, and the relevance to East European reform discussed.
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Published date: December 1995
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Local EPrints ID: 33033
URI: http://eprints.soton.ac.uk/id/eprint/33033
ISSN: 0147-5967
PURE UUID: bf41ecb0-6471-46d3-9d96-93346f444963
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Date deposited: 12 Dec 2007
Last modified: 15 Mar 2024 07:41
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Author:
Norman J. Ireland
Author:
Geoff Stewart
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