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Agricultural Cooperatives And Cost-Reducing R&D In The Agri-Food System

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  • Giannakas, Konstantinos
  • Fulton, Murray E.

Abstract

This paper develops a sequential game theoretic model of heterogeneous producers to examine the effect of cooperative involvement on process innovation activity in the agricultural input-supplying sector. Analytical results show that the involvement of an open-membership cooperative in process innovation activity can be welfare enhancing and, thus, socially desirable. The presence of the co-op can increase the arrival rate of process innovations and productivity growth while reducing the price of agricultural inputs. The effectiveness of the co-op in innovation activity is determined by its initial market share and the size of the innovation costs.

Suggested Citation

  • Giannakas, Konstantinos & Fulton, Murray E., 2003. "Agricultural Cooperatives And Cost-Reducing R&D In The Agri-Food System," 2003 Annual meeting, July 27-30, Montreal, Canada 22193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22193
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    References listed on IDEAS

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    Keywords

    Agribusiness; Agricultural and Food Policy;

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