THE EFFECT OF MARKETING COOPERATIVES ON COST-REDUCING PROCESS INNOVATION ACTIVITY

Kyriakos Drivas and Konstantinos Giannakas ()

No 9936, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper examines the market and welfare effects of cooperative involvement in cost-reducing process innovation activity in the context of a mixed oligopsony where an open-membership marketing co-op competes with an IOF. The presence of the marketing co-op is shown to result in increased producer prices and welfare gains for all farmers, members and non-members of the co-op. The effect of the marketing co-op on process innovation activity depends on the relative quality of its final products, the degree of producer heterogeneity, and the size of innovation costs.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 32
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9936

DOI: 10.22004/ag.econ.9936

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