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Quality Provision and Governance Structure Variety: Pooling versus double markup

Author

Listed:
  • Liang, Qiao
  • Hendrikse, George W.J.
  • Huang, Zuhui

Abstract

This paper examines how farmers producing differentiated quality products choose different governance structures in a non-cooperative game between farmers, enterprises, and consumers. A cooperative and an IOF (investor owned firm) coexist in equilibrium and low quality is delivered by the cooperative. The trade-off between pooling and the elimination of the double markup determines the attractiveness of cooperatives compared to IOFs.

Suggested Citation

  • Liang, Qiao & Hendrikse, George W.J. & Huang, Zuhui, "undated". "Quality Provision and Governance Structure Variety: Pooling versus double markup," 2010 IAMO Forum, June 16-18, 2010, Halle (Saale), Germany 90805, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamo10:90805
    DOI: 10.22004/ag.econ.90805
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    References listed on IDEAS

    as
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