INFLUENCE COSTS IN HETEROGENEOUS COOPERATIVES: A FORMAL MODEL OF SALES DISTORTION

Peter Bogetoft and Henrik Ballebye Olesen

No 22190, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Modern agricultural marketing cooperatives must implement farm-level differentiation to meet requirements from high-quality market segments, e.g. consumers focusing on animal welfare. This makes the cooperatives internally heterogeneous and increases the influence costs. In particular, the marketing of specialty, high-quality products is a controversial issue for cooperatives, because different producer groups have different interests. The standard producers, who normally hold the majority vote in the cooperatives, are reluctant to promote the sale of specialty products and hereby reduce the bargaining power of the specialty producers. We explore these arguments in a formal model.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 15
Date: 2003
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Influence Costs in Heterogeneous Cooperatives: A Formal Model of Sales Distortion (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea03:22190

DOI: 10.22004/ag.econ.22190

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