The Advantage of Cooperatives under Asymmetric Cost Information

Peter Bogetoft, Peter Max Friis Jensen and Rene H. Olsen

No 24176, Unit of Economics Working Papers from Royal Veterinary and Agricultural University, Food and Resource Economic Institute

Abstract: We consider how to organize the processing and marketing of an agricultural product when farming costs are known only by the individual farmers. We show that when marginal costs are un-correlated and the market for final goods is competitive, the socially optimal production levels may be sustained by a cooperative and a cooperative only. We show also that the cooperative form is particularly useful when the uncertainty is large and the net revenue product is small.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 19
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/24176/files/ew990006.pdf (application/pdf)

Related works:
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:ags:rvaewp:24176

DOI: 10.22004/ag.econ.24176

Access Statistics for this paper

More papers in Unit of Economics Working Papers from Royal Veterinary and Agricultural University, Food and Resource Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().