Do quality incentive payments improve cooperative performance? The case of small French agricultural cooperatives

Ibrahima Barry and Damien Rousselière

Journal of Agricultural Economics, 2022, vol. 73, issue 3, 938-948

Abstract: Small agricultural cooperatives are increasingly using differentiated payments based on the quality of their members’ products. Such cooperatives make a trade‐off between the return on investment in quality and members’ disengagement from the cooperative. Based on data from the five‐year survey of small French agricultural cooperatives, we analyse the effect of incentive payments on small cooperatives’ performances. We investigate how incentive payments can reduce the problem of free riders and improve these cooperatives’ reputation. Using a quantile regression method, while controlling for the potential endogeneity of incentive payments, we show that quality‐based compensation can rule out cooperative members’ defrauding options. This remuneration has a non‐linear positive effect on small cooperatives’ performances. The results suggest that incentive payments improve small cooperatives’ performances.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1477-9552.12475

Related works:
Working Paper: Do quality incentive payments improve cooperative performance? The case of small French agricultural cooperatives (2022)
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:bla:jageco:v:73:y:2022:i:3:p:938-948

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-857X

Access Statistics for this article

Journal of Agricultural Economics is currently edited by David Harvey

More articles in Journal of Agricultural Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().