@article{Zavelberg:156225,
      recid = {156225},
      author = {Zavelberg, Yvonne and Wieck, Christine and Heckelei,  Thomas},
      title = {Entry deterring effects of contractual relations in the  dairy processing sector},
      address = {2013},
      number = {870-2016-60751},
      series = {Poster},
      pages = {2},
      year = {2013},
      abstract = {Addressing the competitive imbalances in the dairy sector,  the High Level Group of dairy market experts proposed  written formal contracts between raw milk producers and  processors to improve the bargaining position of producers  and to stabilize milk supply. However, exclusive contracts,  where a farmer is obliged to deliver his whole production  amount to one dairy only, may lead to the opposite effect  as they may deter market entry of rival dairies. We develop  a theretical model and show that an incumbent dairy can  deter entry of a rival dairy when the farmer is risk  averse.},
      url = {http://ageconsearch.umn.edu/record/156225},
      doi = {https://doi.org/10.22004/ag.econ.156225},
}