Template-Type: ReDIF-Paper 1.0
Author-Name: Wei, A.
Author-Name-Last: Wei
Author-Name-First: Anyan
Author-Name: Hendrikse, G.W.J.
Author-Name-Last: Hendrikse
Author-Name-First: George
Title: Cognition and Incentives in Cooperatives
Abstract: We extend the results of Feng and Hendrikse (2012) by investigating the relationship between cognition and incentives in cooperatives versus investor-owned firms (IOFs) in a multi-tasking principal-agent model. The principal chooses the incentive intensity as well as the precision of monitoring, while the agent chooses the activities. We establish that a cooperative is uniquely efficient when either the synergy between the upstream and downstream activities or the knowledgeability of the members regarding the cooperative enterprise is sufficiently high.
Length: 25
Creation-Date: 2022-05-30
File-URL: https://repub.eur.nl/pub/137124/ERS-2022-007-ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2022-007-ORG
Keywords: Cognition, incentives, cooperative, governance, multi-tasking
Handle: RePEc:ems:eureri:137124