Abstract
The main issue is the organization of firms when different degrees of labor participation are taken into account. We start reviewing the literature on the LM firm. We then consider a less radical labor participation, i.e., the Aoki firm. We survey extensions of the Aoki's firm to the case of market uncertainty, where also the question of the optimal allocation of the shut down decision is tackled, when shareholders are not able to maximize the total payoff accruing to both workers and owners. By and large, it appears that the degree of labor participation in decisions and rent sharing in a firm is not a settled question, even though it seems to depend on the respective degree of firm specificities of production factors.
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