United Producers Inc. Chapter 11 Restructuring

Frayne Olson

Journal of Cooperatives, 2009, vol. 23, 12

Abstract: Cooperatives have been used as examples of successful collective action activities. However, member free riding within cooperatives and other collective action groups continues to be a challenge. The board of directors and management of United Producers Inc. confronted the member free riding issue when creating a restructuring plan after their Chapter 11 bankruptcy filing. The plan integrated three strategies which have been proposed to mitigate free riding in large groups; coercion, a federated organizational structure, and selective incentives. This article compares Mancur Olson’s theoretical framework for addressing free riding behavior with United Producers Inc. restructuring plan.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlcoop:56936

DOI: 10.22004/ag.econ.56936

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