The purpose of this research study is to compare the structures of traditional co-operatives and New Generation Co-operatives (NGCs). The major problem under review is the horizon problem, which creates disincentives for members to invest in the co-operative, making it difficult for co-operatives to accumulate the equity necessary for maintaining their business activities.The structure of New Generation Co-operatives is believed to alleviate the horizon problem. In this research study, this hypothesis is tested using an experimental economics approach. The results from the experiment show that the NGC structure increased investments.