AGRICULTURAL COOPERATIVES AND COST-REDUCING R&D IN THE AGRI-FOOD SYSTEM

Konstantinos Giannakas () and Murray E. Fulton

No 22193, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper develops a sequential game theoretic model of heterogeneous producers to examine the effect of cooperative involvement on process innovation activity in the agricultural input-supplying sector. Analytical results show that the involvement of an open-membership cooperative in process innovation activity can be welfare enhancing and, thus, socially desirable. The presence of the co-op can increase the arrival rate of process innovations and productivity growth while reducing the price of agricultural inputs. The effectiveness of the co-op in innovation activity is determined by its initial market share and the size of the innovation costs.

Keywords: Agribusiness; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 30
Date: 2003
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea03:22193

DOI: 10.22004/ag.econ.22193

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