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Imperfect Competition in Agricultural Markets and the Role of Cooperatives: A Spatial Analysis

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  • Richard J. Sexton

Abstract

Important characteristics of many agricultural markets are costly to transport raw products and relatively few processors, one or more of which is often a cooperative. This paper analyzes pricing behavior in these oligopsonistic, spatial markets and focuses specifically upon the conjecture that cooperatives may have a procompetitive effect on the behavior of rival non-co-op processors. The existence and magnitude of a procompetitive effect is shown to depend upon a number of structural and strategic factors including competitive relations among the non-co-op processors and a cooperative's membership and pricing policies.

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  • Richard J. Sexton, 1990. "Imperfect Competition in Agricultural Markets and the Role of Cooperatives: A Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 709-720.
    • Handle: RePEc:oup:ajagec:v:72:y:1990:i:3:p:709-720.
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    File URL: http://hdl.handle.net/10.2307/1243041
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