How Spatial Pricing Affects Cooperative Members’ Switching Decisions

Tim Viergutz, Nana Zubek and Birgit Schulze-Ehlers

No 244772, 149th Seminar, October 27-28, 2016, Rennes, France from European Association of Agricultural Economists

Abstract: Structural change at both farmer and cooperative level has significantly altered the vertical relationships between them, with increased member switching activities resulting in negative economic impacts on cooperatives. This paper uses spatial panel modelling in combination with simulation approaches to identify the impact of prices and cooperative member density as well as competitors’ organizational form, production quantity and production growth on members’ switching decisions. With a unique data set we can show that these indicators determine switching decisions. Additionally, findings hint at the relevance of social interaction for members’ switching decisions.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 23
Date: 2016
New Economics Papers: this item is included in nep-hme
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa149:244772

DOI: 10.22004/ag.econ.244772

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