Cooperative Incentives for Vertical Integration: The Bilateral Monopoly Case

A model for evaluating farmer cooperative incentives for integrating forward into processing activities is presented for the bilateral monopoly market structure. Analysis suggests that cooperatives lack an incentive to integrate unless they are successful in restricting producer output to optimal levels. This result provides an additional explanation for empirical observations.


Issue Date:
Aug 09 1992
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/271391
Language:
English
Total Pages:
15




 Record created 2018-04-13, last modified 2018-04-13

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