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A Theory of Agricultural Marketing Cooperatives with Direct Selling

Author

Listed:
  • Maxime Agbo

    (Agrocampus-Ouest, Department of Economics, Management and Society, UMR GRANEM, France)

  • Damien Rousselière

    (Agrocampus-Ouest, Department of Economics, Management and Society, UMR GRANEM, France)

  • Julien Salanié

    (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,Université Jean Monnet, Saint-Etienne, F-42000, France)

Abstract

We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on a local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.

Suggested Citation

  • Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct Selling," Working Papers 1331, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:1331
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    More about this item

    Keywords

    marketing cooperative; direct selling; local market; competitive;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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