Valuation of Transferable Delivery Rights for Marketing Cooperatives

Charles V. Moore and Jay E. Noel

Journal of Cooperatives, 1995, vol. 10, 17

Abstract: Delivery rights to a cooperative's marketing pool can take on a value independent of the members' equity share under certain conditions. Based on anecdotal information, transferable delivery rights become valuable when the pool is fixed in size (closed), members are protected from exploitation of quasi economic rents, and have an assured "home" for their production. The greater the potential buyers' aversion to risk, the higher the value of the delivery right. The right has additional value if the cooperative generates a premium per unit return due to product differentiation and market power. Cooperatives competing with investor-owned firms in less than purely competitive markets must be able to pay equal net returns to members if they are to survive.

Keywords: Agribusiness; Marketing (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/46183/files/Vo ... 95%20Article%201.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jlcoop:46183

DOI: 10.22004/ag.econ.46183

Access Statistics for this article

More articles in Journal of Cooperatives from NCERA-210 Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().