The economic nature of agricultural cooperatives is explained by means of a logical continuation of the organizational economics rationale for family farms. The traditional explanations of the importance of family farms is discussed, and embedded in a broader framework which considers their transaction cost-economizing effect and their limitations in terms of limited ability to scale up production and to reach adequate market power. We maintain that these disadvantages represent the major motives for the creation of agricultural cooperatives, whose role lies in enabling the realization of advantages of large scale organization in agriculture while avoiding its transaction costs.
Volume (Year): 2 (2013)
Issue (Month): 1 (May)
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- Gary S. Becker & Kevin M. Murphy, 1994.
"The Division of Labor, Coordination Costs, and Knowledge,"
in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 299-322
National Bureau of Economic Research, Inc.
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- Becker, G.S. & Murphy, K.M., 1991. "The Division of Labor, Coordination Costs, and Knowledge," University of Chicago - Economics Research Center 92-5, Chicago - Economics Research Center.
- Gary S. Murphy Becker & Kevin M., 1992. "The Division of Labor, Coordination Costs, and Knowledge," University of Chicago - George G. Stigler Center for Study of Economy and State 79, Chicago - Center for Study of Economy and State.
- Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
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- Valentinov, Vladislav & Iliopoulos, Constantine, 2012. "Property Rights Problems in Agricultural Cooperatives: A Heterodox Institutionalist Perspective," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(3).
- Harris, Andrea & Stefanson, Brenda & Fulton, Murray E., 1996. "New Generation Cooperatives and Cooperative Theory," Journal of Cooperatives, NCERA-210, vol. 11.
- Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
- Robin M. Cross & Steven T. Buccola & Enrique A. Thomann, 2009. "Cooperative liquidation under competitive stress," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(3), pages 369-393, September.
- Valentinov, Vladislav, 2007. "Why are cooperatives important in agriculture? An organizational economics perspective," Journal of Institutional Economics, Cambridge University Press, vol. 3(01), pages 55-69, April. Full references (including those not matched with items on IDEAS)
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