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A Game Theoretic Approach to Analyse Cooperation between Rural Households in Northern Nigeria

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  • Gerichhausen, M.
  • Berkhout, Ezra D.
  • Hamers, H.J.M
  • Manyong, Victor M.

Abstract

To improve the livelihood of the poor in Sub-Saharan Africa (SSA) much attention has been paid to the development of new agricultural technologies. We hypothesize that farmers can also improve their livelihood through cooperation. Partial cooperation, in which knowledge is shared or bargaining power improved, is relatively common in SSA, while cooperation where all resources are fully shared, which we address, has rarely been investigated. An important pre-requisite to establish such cooperation, is the need for a fair division rule for the gains of the cooperation. This paper combines linear programming and cooperative game theory to model the effects of cooperation of (individual) households on income and farm plans. Linear programming establishes insight in the optimal farm plans in cooperation, and cooperative game theory is used to generate fair division rules. The model is applied to a village in Northern Nigeria. Households are clustered based on socio-economic parameters, and we explore cooperation between clusters. Cooperation leads to increased income and results in changes in farm plans, because more efficient use of resources leads to more intensified agriculture (labour intensive – high value crops).

Suggested Citation

  • Gerichhausen, M. & Berkhout, Ezra D. & Hamers, H.J.M & Manyong, Victor M., 2008. "A Game Theoretic Approach to Analyse Cooperation between Rural Households in Northern Nigeria," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52146, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae07:52146
    DOI: 10.22004/ag.econ.52146
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    References listed on IDEAS

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    1. Earl O. Heady, 1954. "Simplified Presentation and Logical Aspects of Linear Programming Technique," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 36(5), pages 1035-1048.
    2. Richard A. King, 1953. "Some Applications of Activity Analysis in Agricultural Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 35(5), pages 823-833.
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    Cited by:

    1. Gezahegn, T.W. & Maertens, M., 2018. "Economic Incentives for Collective Action in Agriculture: Evidence from Agricultural Co-operatives in Tigray, North Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277137, International Association of Agricultural Economists.

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