Just to give maybe a bit more detailed as well as little different description of
Participatory Economy which is mainly based on
Jaroslav Vanek's book with the same name..
I'd like to call it market socialism without pointing to leninist thatcherism practiced in China by CCP. Vanek's system has a lots of similarities with these principles in other node but I think it's worthy to write them down:
Economic democracy and self-management:
The general assembly of working community (factory, office..) has the highest authority. In the general assembly every worker has one vote and can equally participate in decision making process. The assembly may choose executive board which can be changed at any time by the majority of workers.
Equity:
There are some examples of worker-run enterprises and salaries tend to differ between 1:3 - 1:5. The distribution of income is decided in general assembly.
Markets:
This economic system is essentially market economy. The major diffenrence with capitalism is that the first goal is not to maximize profit or return of investment but wellbeing of workers.
Efficiency:
Participatory economy has all incentives of capitalism and it has also some additional ones. Workers tend to be more motivated.
Growth:
Because self-managed enterprise tries to maximize the income of workers it doesn't have same incentives to grow and relies more on principle live and let live and therefore there are no such trend of monopolization as in capitalism.
These facts all together will be enough to transform some fundamental functions of capitalism. Mostly these lead us to social benefits but also makes it for self-managed enterprises harder to penetrate into capitalist sphere (limits of growth and institutions of capitalism).