INFLUENCE COSTS IN HETEROGENEOUS COOPERATIVES: A FORMAL MODEL OF SALES DISTORTION

Modern agricultural marketing cooperatives must implement farm-level differentiation to meet requirements from high-quality market segments, e.g. consumers focusing on animal welfare. This makes the cooperatives internally heterogeneous and increases the influence costs. In particular, the marketing of specialty, high-quality products is a controversial issue for cooperatives, because different producer groups have different interests. The standard producers, who normally hold the majority vote in the cooperatives, are reluctant to promote the sale of specialty products and hereby reduce the bargaining power of the specialty producers. We explore these arguments in a formal model.


Subject(s):
Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/22190
PURL Identifier:
http://purl.umn.edu/22190
Total Pages:
15
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2020-10-28

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