United Producers Inc. Chapter 11 Restructuring

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.


Subject(s):
Issue Date:
2009
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/56936
Published in:
Journal of Cooperatives, Volume 23
Page range:
130-140
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-25

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