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The Effect Of Marketing Cooperatives On Cost-Reducing Process Innovation Activity

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  • Drivas, Kyriakos
  • Giannakas, Konstantinos

Abstract

This paper examines the market and welfare effects of cooperative involvement in cost-reducing process innovation activity in the context of a mixed oligopsony where an open-membership marketing co-op competes with an IOF. The presence of the marketing co-op is shown to result in increased producer prices and welfare gains for all farmers, members and non-members of the co-op. The effect of the marketing co-op on process innovation activity depends on the relative quality of its final products, the degree of producer heterogeneity, and the size of innovation costs.

Suggested Citation

  • Drivas, Kyriakos & Giannakas, Konstantinos, 2007. "The Effect Of Marketing Cooperatives On Cost-Reducing Process Innovation Activity," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9936, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9936
    DOI: 10.22004/ag.econ.9936
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    Cited by:

    1. Luo, Jianli & Guo, Hongdong & Jia, Fu, 2017. "Technological innovation in agricultural co-operatives in China: Implications for agro-food innovation policies," Food Policy, Elsevier, vol. 73(C), pages 19-33.

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    Keywords

    Agribusiness;

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