Mixed Markets in the Food Processing Industry
The food processing industry in Western countries operates in markets that usually are highly concentrated, consisting of a few cooperatives and investor-owned firms. However, in the literature some studies questioned whether the mixed market structure is a stable equilibrium, and suggestions are made that the cooperatives eventually will crowd out all investor-owned firms. To analyse the problem, the family of models of mixed markets is generalized and analysed. It is shown that a mixed market equilibrium may occur under quite general conditions. Also, it is shown that the investor-owned firm may serve as a yardstick of production to the cooperative, helping farmers achieve an increased payoff relative to a situation with a single coop in the market.
|Date of creation:||2005|
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- Albaek, Svend & Schultz, Christian, 1998.
"On the relative advantage of cooperatives,"
Elsevier, vol. 59(3), pages 397-401, June.
- Mats Bergman, 1997. "Antitrust, Marketing Cooperatives, and Market Power," European Journal of Law and Economics, Springer, vol. 4(1), pages 73-92, January.
- Kostas Karantininis & Angelo Zago, 2001. "Endogenous Membership in Mixed Duopsonies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1266-1272.
- V. James Rhodes, 1983. "The Large Agricultural Cooperative as a Competitor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1090-1095.
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