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Abstract

The principal goal of shared-services cooperatives is to capture savings through lower administrative costs, quantity purchasing discounts, sharing fixed costs, and assured levels of business with vendors and suppliers. Although the idea of cooperation is not new in North Dakota, the question raised here is whether there is potential applications for non-agricultural shared-services cooperatives that provide services that are absent or inadequate in rural communities in the state. It is concluded that there is potential application for shared-services cooperatives in both public and private sectors in North Dakota based on opportunities to share fixed costs and to capitalize on pecuniary economies of size.

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