THE NATURE OF COOPERATIVE VALUES AND PRINCIPLES: Transaction cost theoretical explanations

In: Annals of public and cooperative economics, Band 67, Heft 4, S. 633-653

Abstract

ABSTRACT*: Members' transaction costs decrease as a consequence of cooperative principles and cooperative values. The members' cooperative values reduce their uncertainty in relation to each other and in their relationship to the business environment. Thus, there are two categories of values: social values and sovereignty values. The cooperative principles are characteristics of the cooperative organization that aim to reduce transaction costs in the members' relationships with the cooperative. Thus we find two types of principles: business principles and society principles. Business principles state how relationships between the cooperative enterprise and the members should be designed. Society principles reduce transaction costs for members in their interactions.