An integration of the Contribution-Inducement model and economic theory

According to the Contribution-Inducement model, the organization is viewed as a coalition between a number of participants. This model is made more precise with the aid of economic theory in order to enhance the degree to which it can be tested. With the help of C-I model, defined here, problems and actions within a market economy can be analysed in a more operational way than previously. The model can also provide a new insight into the power relations and conflicts between the various participants. According to this model the management, by virtue of its central, well-informed and professional standing, will be in a position to concentrate on increasing its own freedom of action at the expense of consumers in particular but also of labour. In that case, the owners of the organization will, with the aid of the management, obtain a strikingly large part of the surplus generated by the organization.