Abstract
Market economies are called ‘capitalist’ because in such economies most production is carried out in organizations owned by those who supply the firms’ financial capital. A firm is ‘owned’ by its capital investors because, first, the capital investors claim the firm’s net receipts or profits and, second, they have the authority to direct and manage (often indirectly) the firm’s activities.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Bibliography
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Pencavel, J. (2008). Worker Participation and Profit Sharing. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2824-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2824-1
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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