On The Future of Co-operatives

Abstract

Two extensions are formulated of the analysis of the allocation ofdecision rights in Hendrikse and Veerman (2001). First, the incompletecontracts in their article can be viewed as simple long-termcontracts, i.e. it is not allowed to make the allocation of authoritycontingent on the circumstances. Contingent long-term contracts arenow considered. Second, another aspect of decision rights is thefrequency of meetings between the owners and managers of enterprises.This aspect will be addressed from a long-term contract perspective aswell as a loss aversion perspective.contingent control rights;frequency of board meetings