ABSTRACT
The provision of social insurance by national and regional government organizations in modern developed economies has tended to blunt the incentive for membership in large extended households. Thus monitoring in response to agency problems is more likely to be vested in members in employee-owned firms than among the employees of the same tier in proprietary firms. The ownership rights in most user-oriented firms are structured in very different ways than in proprietary and employee-owned firms, and are more like those in government organizations. Since the owners of user-oriented firms are interested in certain aspects of their output rather than profit, they will engage in strategies that are uncommon in proprietary firms. Consequently, the authors would expect that in user-oriented firms employees will have more power than in proprietary firms, and would inject a measure of resemblance to employee-owned firms, perhaps the Employee Ownership Stock Plan variant.
