The 'cooperation problem' is
A)how to persuade customers to cooperate with each other when supplies are scarce.
B)how to get workers to coordinate their actions so that something is produced on time.
C)how to align the interests of the different participants who make up a firm.
D)how to get rival commercial firms to cooperate during disasters or emergencies.

Question

Quizplus · Accepted Answer

The cooperation problem is about aligning the interests of the different participants who make up a firm. It is often related to the issue of collective action, as different individuals or groups within a firm may have conflicting interests or incentives that make it difficult to achieve common goals. The challenge is to design effective governance mechanisms and incentive structures that encourage cooperation and coordination among all parties involved.

The 'Cooperation Problem' Is