This is the only true market economy. The capitalist economy is not a true market economy because in western capitalism, as in Soviet state capitalism, there is a tendency towards monopoly. Economic democracy tends toward a competitive market. The system is composed of households, enterprises government and so on. The main distinguishing characteristics are in the area of production.
Productive enterprises are small republics.
Everyone who works is a member and the enterprise is run democratically directors are elected democratically and stockholders have no control. There are many possibilities. In Mondragon you have cooperatives developed from the Rochdale principles, characterised by democratic management. And the Yugoslav firms, although poorly designed, were democratically run and semi-cooperative. In an article to the Russian Academy of Sciences concerning Khabarovsk, I argued that during the transition period they should have democratic, but not necessarily cooperative enterprises.