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Dairy Farmer's Valuation of Decreased Market Risk Offered by Cooperatives

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  • Roach, Brian A.
  • Hamlett, Cathy A.

Abstract

Dairy farmers often rank the benefits from a secure market as a major reason for belonging to a milk-marketing cooperative. This paper presents a methodology for valuing this decreased market risk by developing a willingness-to-pay measure. Stochastic dominance with respect to a function is used to estimate the willingness-to-pay measure.

Suggested Citation

  • Roach, Brian A. & Hamlett, Cathy A., 1991. "Dairy Farmer's Valuation of Decreased Market Risk Offered by Cooperatives," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea91:271240
    DOI: 10.22004/ag.econ.271240
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    References listed on IDEAS

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    1. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    2. Mengel, John R., 1988. "Assessing Milk Handler Benefits," Service Reports (SR) 313510, United States Department of Agriculture, Rural Development.
    3. Darrell J. Bosch & Vernon R. Eidman, 1987. "Valuing Information When Risk Preferences Are Nonneutral: An Application to Irrigation Scheduling," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 658-668.
    4. Condon, Andrew M. & Cotterill, Ronald W. & Rhodes, V. James & Shaffer, James D. & Staatz, John M., 1987. "Cooperative Theory: New Approaches," Service Reports (SR) 280614, United States Department of Agriculture, Rural Development.
    5. Robert P. King & Lindon J. Robison, 1981. "An Interval Approach to Measuring Decision Maker Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 510-520.
    6. Wilson, Paul N. & Eidman, Vernon R., 1983. "An Empirical Test Of The Interval Approach For Estimating Risk Preferences," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-13, December.
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