An Analysis of Cooperative Bargaining in the Processing Tomato Industry

E. M. Babb, S. A. Belden and C. R. Saathoff

American Journal of Agricultural Economics, 1969, vol. 51, issue 1, 13-25

Abstract: This article analyzes factors which affected the bargaining process and outcome of negotiations for the processing tomato industry in Indiana and Ohio during the 1966 growing season. Data obtained from Indiana and Ohio tomato processors, grower representatives, and growers was used to reconstruct the bargaining process to determine what factors were considered in establishing contract objectives, to determine various factors each party thought affected bargaining strength and the outcome of negotiations, and to measure attitudes about bargaining. Substantial differences were found between the parties' conception of supply and demand response and those estimated statistically. Processors and grower representatives underestimated supply response and consumers' response to higher prices. Significant differences between grower and processor attitudes toward bargaining were identified. Processors were primarily concerned about quality factors and growers with price. This suggests that a "trading off" of concessions would benefit both parties.

Date: 1969
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:51:y:1969:i:1:p:13-25.

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