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Lock-In of Farmers in Agricultural Cooperatives

In: Vertical Markets and Cooperative Hierarchies

Author

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  • Søren Vincents Svendsen

    (The Aarhus School of Business)

Abstract

Structural changes in the agricultural set-up challenge the value of traditional practices in cooperatives. The major sector development causes a lock-in effect for individual farmers and gives rise to non-Pareto-optimal outcomes for individual farmer members. Constitutional economics may be a theoretical source for reviving the effect of exit by addressing potential adjustments to the traditional cooperative institutional set-up and, thereby, generating more stable equilibria in collective bargaining processes between farmers. The approach focuses on voting rules, investment levels as well as individual positive and negative rights in farmers’ collective actions and calls for adjustment of traditional practices in agricultural cooperatives.

Suggested Citation

  • Søren Vincents Svendsen, 2007. "Lock-In of Farmers in Agricultural Cooperatives," Springer Books, in: Vertical Markets and Cooperative Hierarchies, chapter 0, pages 113-135, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4020-5543-0_7
    DOI: 10.1007/1-4020-5543-0_7
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