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On the Nature of a Cooperative: A System of Attributes Perspective

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  • Feng, Li
  • Hendrikse, George W.J.

Abstract

In the 1950s and 1960s there was a debate about the nature of an agricultural cooperative: the cooperative as extension of the farm, the cooperative as vertical integration or the cooperative as a firm. We revisit this debate with various concepts from the theory of the firm that have been formulated since 1990. Two concepts shed light on this debate: the enterprise as a system of attributes and the delineation of a governance structure in terms of ownership rights, control rights and income rights. We argue that viewing the cooperative as a system of attributes integrates these three views. It emphasizes that a cooperative is a firm in itself, with many independent input suppliers as owners. The feature of many input suppliers as owners implies that the behavioral differences between a cooperative and an investor owned firm have to be addressed by highlighting the unique aspects of the stakeholder owning the enterprise.

Suggested Citation

  • Feng, Li & Hendrikse, George W.J., 2008. "On the Nature of a Cooperative: A System of Attributes Perspective," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44398, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44398
    DOI: 10.22004/ag.econ.44398
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    References listed on IDEAS

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    2. Eeva ALHO, 2019. "Farmers’ Willingness To Invest In New Cooperative Instruments: A Choice Experiment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 161-186, March.

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