This paper models backward integration by processing cooperatives into raw product production. Our analysis demonstrates that a cooperative's incentive to acquire raw product production capacity depends on its ability to restrict member production to optimal levels and the relationship between members and nonmembers in the raw product market.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1998 Annual meeting, August 2-5, Salt Lake City, UT with number
21014.
Length: Date of creation: 1998 Date of revision: Handle: RePEc:ags:aaea98:21014
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