The paper proposes micro-foundations for organizational analysis grounded in behavioral economics. As Simon (1985) pointed out it, "nothing is more fundamental in setting our research agenda and informing our research methods than our view of the nature of the human beings whose behavior we are...

We characterize how just-selfish workers are incompatible with long-run success in workers’ cooperatives. Emphasizing mutual monitoring as key to cooperatives’ organization design to combat “shirking” we discuss what possible mixes of behavioral types in the membership of a cooperative...