Abstract: Various assumptions have been employed to characterise the (perceived) impact, on the labour inputs of other workers, of a decision by one worker to change his labour supply. If Cournot behaviour (i.e. Sen's zero-impact assumption) is postulated for the members of the collective then, generally, we would expect severely inefficient labour incentives. Yet we observe cases of highly efficient collective enterprises, such as the Israeli kibbutz. If we wish to explain efficient outcomes, it seems reasonable to expect that the inter-dependence between labour allocations, necessary for efficiency, should arise endogenously in the model.

　　Subjects: PRODUCER cooperatives; COOPERATIVE societies; EMPLOYEES; LABOR; INCOME; EQUALITY