Is degeneration present in the cooperative realm? Evidence from Portugal.

Abstract

Many authors tried to understand if cooperatives were a good alternative to capitalistic firms and the answer was: apparently, yes (Jones and Backus, 1977; Cable and Fitzroy, 1980; Thomas and Logan, 1982; Jones and Sevjnar, 1985; Ben-Ner, 1988; Bartlett et al., 1992; Craig and Pencavel,1993; Burdín and Dean, 2009; Arando et al., 2012; Clemente et al., 2012; Fakhfakh et al., 2012; Pérotin, 2012; Alves et al., 2014; Burdín, 2014; Burdín,2016) - However, what is the Horizon Problem’s influence on Coops’ Governance? - Is it promoting Coops’ rarity? Why do they represent on average only 3- 4% of total firms, employment and sales (Dow, 2018), and in Portugal less than 1%?