Some Anomalies in the Production Strategy of a Labour-Managed Firm

Optimum tariff on imports from imperfectly competitive labor‐managed firms

“…As for the cases of a competitive and a monopolistic LMFs, the firm may produce no output depending on the functional form of the production function. More specifically, Landsberger and Subotnik (1981) have shown that if the production function exhibits nonincreasing returns to scale, then the monopolistic LMF does not produce output. Alternatively, Haruna (1986) and Estrin (1986) have demonstrated that the competitive LMF cannot simultaneously satisfy the returns-to-scale constraint and second-order conditions if the production function is homogeneous.…”

Strategic Investment in a Labour‐managed Duopoly

“…Landsberger and Subotnik (1981) and Pestieau and Thisse (1979) discuss the problem of the non‐existence of a unique interior optimum for an LM monopoly. They prove that if a production function is homogeneous of degree less than or equal to one, then an interior optimum does not exist for the LM monopoly.…”