A participatory organization is an organization which is built based on public participation rather than their contract obligations.
[1][2] Different types of participatory organizations are possible including production companies, membership organizations (such as trade unions), and co-operatives.
They can be legally registered formal organizations or may object to state regulation and be considered an informal organization.
[3] Participatory organizations can have different levels of participation, ranging from complete economic transparency, to participatory management, and ultimately labor management.
[4] Participatory organizations are negatively affected by the free-rider problem, can be inefficient, and lack clear leadership and strategy.