The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies
International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.
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Volume (Year): 3 (2005)
Issue (Month): 2 (September)
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- Nicholas Economides & Steven S. Wildman, 1995. "Monopolistic Competition with Two-Part Tariffs," Working Papers 95-10, New York University, Leonard N. Stern School of Business, Department of Economics.