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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"The Division of Labor, Coordination Costs, and Knowledge,"
NBER Chapters,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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- 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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