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Agricultural Cooperatives and Market Performance in Food Manufacturing

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  • Rogers, Richard T.
  • Petraglia, Lisa M.
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    Abstract

    Support for the cooperative yardstick hypothesis was found using a standard structure-performance model that was extended to include a cooperative market share variable and was estimated with a large cross-section of food manufacturing markets. Market concentration and advertising intensity were positively related to price-cost margins. In addition, the aggregate market share of the one hundred largest agricultural marketing cooperatives was inversely related to price-cost margins. The magnitude of the effect was largest in the more concentrated markets. This suggests that. where cooperatives have vertically extended themselves into food processing. more competitive outcomes are found even in highly concentrated markets.

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    File URL: http://purl.umn.edu/46399
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    Bibliographic Info

    Article provided by National Council of Farmer Cooperatives in its journal Journal of Agricultural Cooperation.

    Volume (Year): 9 (1994)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:ags:joagco:46399

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    Related research

    Keywords: Agribusiness; Marketing;

    References

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    1. Sexton, Richard J. & Iskow, Julie, 1993. "What Do We Know About the Economic Efficiency of Cooperatives: An Evaluative Survey," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
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    Cited by:
    1. Edelman, Mark & Dunn, John R., 2009. "Cooperatives: A Competitive Yardstick for Health Care," Staff General Research Papers 31470, Iowa State University, Department of Economics.
    2. Anonymous & Gehlhar, Mark J., 2005. "New Directions In Global Food Markets," Agricultural Information Bulletins 33751, United States Department of Agriculture, Economic Research Service.

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