Cooperatives' shares in farm industries: Organizational and policy factors
Cooperatives compete in farm-supply and marketing industries with investor-owned enterprises. Cooperatives' shares should depend on their distinctive organization: dealing “at cost” with members whose equities are tied to their current transactions with the cooperative. We show how this ownership structure affects cooperatives' activities and investment decisions, how it interacts with the public policies affording cooperatives special tax and antitrust status, and what these factors together imply for cooperatives' market shares and the extent of their vertical integration. Available data permit only informal tests of these predictions, but the evidence seems to confirm them strongly.
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Volume (Year): 2 (1986)
Issue (Month): 1 ()
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- R. Carson, 1977. "A Theory of Co-operatives," Canadian Journal of Economics, Canadian Economics Association, vol. 10(4), pages 565-89, November.
- Bonin, John P, 1984. "Membership and Employment in an Egalitarian Cooperative," Economica, London School of Economics and Political Science, vol. 51(23), pages 295-305, August.
- Pinhas Zusman, 1982. "Group Choice in an Agricultural Marketing Co-operative," Canadian Journal of Economics, Canadian Economics Association, vol. 15(2), pages 220-34, May.
- Meade, James E, 1972. "The Theory of Labour-Managed Firms and of Profit Sharing," Economic Journal, Royal Economic Society, vol. 82(325), pages 402-28, Supplemen.
- Jensen, Michael C & Meckling, William H, 1979. "Rights and Production Functions: An Application to Labor-managed Firms and Codetermination," The Journal of Business, University of Chicago Press, vol. 52(4), pages 469-506, October.
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