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How Spatial Pricing Affects Cooperative Members’ Switching Decisions

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  • Viergutz, Tim
  • Zubek, Nana
  • Schulze-Ehlers, Birgit

Abstract

Structural change at both farmer and cooperative level has significantly altered the vertical relationships between them, with increased member switching activities resulting in negative economic impacts on cooperatives. This paper uses spatial panel modelling in combination with simulation approaches to identify the impact of prices and cooperative member density as well as competitors’ organizational form, production quantity and production growth on members’ switching decisions. With a unique data set we can show that these indicators determine switching decisions. Additionally, findings hint at the relevance of social interaction for members’ switching decisions.

Suggested Citation

  • Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa149:244772
    DOI: 10.22004/ag.econ.244772
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    Cited by:

    1. Tribl, Christoph & Morawetz, Ulrich & Salhofer, Klaus, 2017. "Spatial Competition In A Mixed Market - The Case Of Milk Processors," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260911, European Association of Agricultural Economists.

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    Agricultural and Food Policy; Farm Management;

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