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Quality and Self-Regulation in Agricultural Markets: How Do Producer Organisations Make the Rules?

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  • Zago, Angelo M

Abstract

The paper focuses on Producer Organisations (POs) and studies the interaction of asymmetric information and the democratic process in the quality choices of a group of heterogeneous producers facing an opportunity to gain from their collective capacity to establish a reputation for their products. It makes the PO's choice of remuneration scheme endogenous and distinguishes between a constitutional and a working phase. It compares different equilibria, according to which type of producer is in the majority, and it finds that, irrespective of the constitutional rules adopted, the quality level provided by the group is higher or lower than the first-best according to the producers in the majority. Copyright 1999 by Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 26 (1999)
Issue (Month): 2 (June)
Pages: 199-218

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Handle: RePEc:oup:erevae:v:26:y:1999:i:2:p:199-218

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Cited by:
  1. Tauber, Ramona & Anders, Sven & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
  2. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
  3. repec:hal:wpaper:halshs-00354960 is not listed on IDEAS
  4. Mérel, Pierre R. & Saitone, Tina L. & Sexton, Richard J., 2009. "Cooperatives and Quality-Differentiated Markets: Strengths, Weaknesses, and Modeling Approaches," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(2).

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