Cooperative Incentives for Vertical Integration: The Bilateral Monopoly Case

Sanjib Bhuyan and Jeffrey S. Royer

No 271391, 1992 Annual Meeting, August 9-12, Baltimore, Maryland from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A model for evaluating farmer cooperative incentives for integrating forward into processing activities is presented for the bilateral monopoly market structure. Analysis suggests that cooperatives lack an incentive to integrate unless they are successful in restricting producer output to optimal levels. This result provides an additional explanation for empirical observations.

Keywords: Agricultural and Food Policy; Industrial Organization (search for similar items in EconPapers)
Pages: 15
Date: 1992-08-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea92:271391

DOI: 10.22004/ag.econ.271391

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