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A Model of a Bargaining Cooperative

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  • George W. Ladd

Abstract

This paper analyzes behavior of a cooperative of raw material producers. The cooperative sells a production input to producers, provides a "free" service to members, and bargains with processors for raw material price. One analysis assumes the cooperative's objective is maximization of the raw material price received by members. Another assumes the objective is maximization of quantity marketed through the cooperative. The cooperative has three instruments to manipulate to attain its objective. First-order maximization conditions for the two objectives are quite different from each other and from "marginal cost equals marginal revenue" conditions.

Suggested Citation

  • George W. Ladd, 1974. "A Model of a Bargaining Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 509-519.
  • Handle: RePEc:oup:ajagec:v:56:y:1974:i:3:p:509-519.
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    File URL: http://hdl.handle.net/10.2307/1238603
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    Cited by:

    1. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    2. Puaha, Hubertus & Tilley, Daniel S., 2003. "Investment Decisions In New Generation Cooperatives: A Case Study Of Value Added Products (Vap) Cooperative In Alva, Oklahoma," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35069, Southern Agricultural Economics Association.
    3. Vontalge, Alan L., 1991. "A feasibility study of swine producer management cooperatives," ISU General Staff Papers 1991010108000018168, Iowa State University, Department of Economics.
    4. Han, Saim Woo, 1992. "A production and pricing decision model for the Korean agricultural cooperatives," ISU General Staff Papers 1992010108000010995, Iowa State University, Department of Economics.
    5. Puaha, Hubertus & Tilley, Daniel S., 2002. "Coalition Development In The Agricultural Marketing System," 2002 Annual meeting, July 28-31, Long Beach, CA 19721, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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