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In Korea, the agricultural marketing patterns have been changing like the portion of large-scale retailer is increasing. To maintain a vertical relationship, it is important to meet the supply conditions of raw products in terms of a stable and uniform quality at all times. The local cooperatives must adopt the post-harvesting technologies and invest the nonphysical capital for developing the market options. This large investment results in high fixed costs so that the farmers' participation is a vital factor. It is more effective strategy that the local cooperatives first invest in marketing activities and then search a good measure encouraging farmers' participation. Main focus in this paper is to improve the pricing schemes for encouraging farmers' participation in cooperative marketing activities.


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