Free Riding off Capitalism: Entrepreneurship and the Mondragon Experiment

Abstract

As the deficiencies of central planning have become more obvious, shares in market socialism have risen. Whilst accepting the case for competitive markets, market socialists question the desirability of and the need for capitalist forms of private property and share a commitment to more inclusive forms of ownership. Whilst this leaves open the question of precisely what form of ownership is appropriate, many have advocated the use of labour co-operatives in which (i) only those who work for a firm are entitled to a share of its ownership, (ii) all those who work for a firm are entitled to a share of its ownership, and in which consequently (iii) profits and (iv) decision making are shared.