Cooperative Platform in the Modern Economy

Abstract

The study aims to analyze cooperative platforms as a new socio-economic phenomenon of our time. The digital revolution is characterized by technology platforms that organize workers to provide services around the world. This study attempts to understand how the platform cooperative movement uses new legal structures and digital management tools. The analysis of cooperative platforms is complicated by the existence of both social and practical goals. A key problem of cooperative platforms is their legitimacy, requiring an adequate legal status. Platforms use the Internet for transparency and communication. However, there is a serious risk of information overload that prevents people from participating in cooperative platforms. This circumstance has to be taken into account in the management process. Therefore, in democratic governance, digital platforms face tensions between transparency and efficiency. The competitive environment is characterized by a high level of concentration due to the network effect. It also requires cooperative platforms to develop tools that have a stronger signal effect (such as labels and brands). Although, cooperatives and new hybrid legal forms have social goals and provide democratic governance. Nevertheless, the platforms under study still need to use additional tools (legal and contractual), and sometimes even a combination of structures.