Pricing Power of Agricultural Products under the Background of Small Peasant Management and Information Asymmetry

From the background of small peasant management and information asymmetry, this paper introduced the middle profit sharing model and discussed influence factors and ownership of pricing power of agricultural products. It obtained following results: (i) the transaction scale has positive effect on farmer’s pricing power of agricultural products, while the competitor’s transaction scale has negative effect on it, so does the cost for information search; (ii) under the condition of small peasant management system, farmer is in a relatively weak position in the distribution of pricing power of agricultural products, due to factors such as small transaction scale, information asymmetry and farmer’s weak negotiation ability; (iii) through cooperative game, farmer and buyers can share cooperative surplus at the agreed ratio; (iv) the introduction of self-organizing specialized farmers cooperatives is favorable for solving the problem of pricing power of agricultural products, and possible problems, such as “collective action dilemma” and “fake cooperatives” in the cooperative development process can be solved by internal and external division of labor and specialization of cooperatives.

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Asian Agricultural Research, 08, 03
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 Record created 2017-04-01, last modified 2019-08-30

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