Involved In The Production Conditions Of The People The Level Of Cooperation

The actual situation shows that in many areas of economic and social life, the plan arrangement is invalid and the market mechanism can also malfunction. So, for these public affairs which can not be privatized and reasonably arranged by the external program, it has great theoretical value and practical significance to find out a suitable institutional arrangement. There is a theoretical assumption that human behavior contains both competition and cooperation. According to this assumption, the problems above, though seemed to be dilemmas, can be properly solved by the cooperation among people. Corresponding to the characteristics of such a cooperative arrangement, it can be incorporated into the discussion of the cooperation among individuals combined by "lateral contract". What are the formation conditions of lateral cooperation? From the perspective of individual decision-making knowledge, this paper attempts to explore the meaning of common knowledge and its effects on the formation of lateral cooperation. The article first reviews the related literatures, and then we analyze the nature and formation conditions of lateral cooperation from different angles based on the existing researches. On this basis, the paper put forward a theoretical assumption as the following points: Firstly, the individual decision-making knowledge will determine the nature of individual utility function which will then impact the individual actions. Finally, formed by individual decision-making knowledge, the common knowledge has a significant impact on cooperative behavior. Based on the theoretical assumptions, the paper sets up a theoretical model in view of participants' decision-making knowledge, and it comes to a conclusion which is in accordance with the theoretical ideas. Then, by inspecting the cases of owners' cooperative management of shared resources, we establish a empirical test which well verifies the theoretical assumption. At last, the article concluded that the more widely distributed of the common knowledge, the easier of cooperation to be formed.