IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/1992010108000010995.html
   My bibliography  Save this paper

A production and pricing decision model for the Korean agricultural cooperatives

Author

Listed:
  • Han, Saim Woo

Abstract

The purposes of this study were to introduce the idea that a farm cooperative is a decision unit in Korea, and to develop a short-run model of the cooperative which could be used to analyze its problems;In particular, an attempt was made to develop under certainty a normative-prescriptive model of a diversified multi-product marketing, supply inputs and consumption goods cooperative which served both member and nonmember patrons, and also develop a model of a multi-product marketing and supply cooperative under uncertainty;Development of the model under certainty began with the construction of a sub-model of a typical multi-product member patron. A similar sub-model of a typical nonmember patron was also developed;The cooperative decision-maker was assumed to maximize the welfare function whose elements were the individual members' indirect utility functions. The decision-maker determined the optimal prices for the products it marketed and supplied and optimal level of club goods it provided;Finally, a model of the cooperative was developed to consider the effects of price uncertainty on the objective function. The cooperative decision-maker was assumed to maximize its welfare function which is to increase the sum of individual members' expected profits, and decrease the member's risk. The optimality conditions for this model were analyzed.

Suggested Citation

  • Han, Saim Woo, 1992. "A production and pricing decision model for the Korean agricultural cooperatives," ISU General Staff Papers 1992010108000010995, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:1992010108000010995
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/72712a89-ca67-447b-9237-75ad1050025f/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard J. Sexton & Terri A. Sexton, 1987. "Cooperatives as Entrants," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 581-595, Winter.
    2. Richard E. Just, 1974. "An Investigation of the Importance of Risk in Farmers' Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 14-25.
    3. Eugene Clark, 1952. "Farmer Cooperatives and Economic Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 34(1), pages 35-51.
    4. Christy, Ralph D., 1987. "The Role of Farmer Cooperatives in a Changing Agricultural Economy," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 21-28, July.
    5. Richard Phillips, 1953. "Economic Nature of the Cooperative Association," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 35(1), pages 74-87.
    6. John J. VanSickle & W. Ladd George, 1983. "A Model of Cooperative Finance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 273-281.
    7. T. T. Williams, 1974. "The Role of Low-Income Rural Cooperatives in Community Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(5), pages 913-918.
    8. Josef Bar, 1975. "A Mathematical Model of a Village Cooperative Based on the Decomposition Principle of Linear Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 353-357.
    9. Williams, T.T., 1974. "The Role Of Low-Income Rural Cooperatives In Community Development," 1974 Annual Meeting, August 18-21, College Station, Texas 284569, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-999, September.
    11. P. B. R. Hazell & P. L. Scandizzo, 1974. "Competitive Demand Structures under Risk in Agricultural Linear Programming Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 235-244.
    12. Clare LeVay, 1983. "Some Problems of Agricultural Marketing Co-operatives' Price/Output Determination in Imperfect Competition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(1), pages 105-110, March.
    13. Ian W. Hardie, 1969. "Shadow Prices as Member Returns for a Marketing Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(4), pages 818-833.
    14. Bruce L. Jones, 1986. "A Model of Cooperative Finance: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 170-172.
    15. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    16. Richard J. Sexton, 1984. "Perspectives on the Development of the Economic Theory of Co-operatives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(2), pages 423-436, July.
    17. Christy, Ralph D., 1987. "The Role Of Farmer Cooperatives In A Changing Agricultural Economy," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-8, July.
    18. John J. VanSickle & George W. Ladd, 1986. "A Model of Cooperative Finance: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 173-176.
    19. Richard E. Caves & Bruce C. Petersen, 1986. "Cooperatives' shares in farm industries: Organizational and policy factors," Agribusiness, John Wiley & Sons, Ltd., vol. 2(1), pages 1-19.
    20. 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.
    21. Eugene Clark, 1952. "Farmer Cooperatives and Economic Welfare—Rejoinder," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 34(3), pages 404-407.
    22. 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.
    23. George W. Ladd, 1974. "A Model of a Bargaining Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 509-519.
    24. Charles R. Knoeber & David L. Baumer, 1983. "Understanding Retained Patronage Refunds in Agricultural Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 30-37.
    25. Peter Vitaliano, 1983. "Cooperative Enterprise: An Alternative Conceptual Basis for Analyzing a Complex Institution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1078-1083.
    26. Richard E. Just, 1975. "Risk Aversion under Profit Maximization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 347-352.
    27. O. Aresvik, 1957. "Member Behaviour and Optimal Pricing in Marketing Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 39(1), pages 169-172.
    28. Hausman, Jerry A, 1981. "Exact Consumer's Surplus and Deadweight Loss," American Economic Review, American Economic Association, vol. 71(4), pages 662-676, September.
    29. Raphael Trifon, 1961. "The Economics of Cooperative Ventures—Further Comments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(2), pages 215-235.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George Hendrikse & Li Feng, 2013. "Interfirm cooperatives," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 26, Edward Elgar Publishing.
    2. Malvido Perez Carletti Agustina & Hanisch Markus & Rommel Jens & Fulton Murray, 2018. "Farm Gate Prices for Non-Varietal Wine in Argentina: A Multilevel Comparison of the Prices Paid by Cooperatives and Investor-Oriented Firms," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(1), pages 1-14, January.
    3. Chaddad, Fabio Ribas, 2006. "Investment Constraints in Agricultural Cooperatives: Theory, Evidence and Solutions," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 143259, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    4. Vontalge, Alan L., 1991. "A feasibility study of swine producer management cooperatives," ISU General Staff Papers 1991010108000018168, Iowa State University, Department of Economics.
    5. Tennbakk, Berit, 1992. "The Case of Cooperative Mixed Duopoly," Institute for Research on Labor and Employment, Working Paper Series qt8wp406w7, Institute of Industrial Relations, UC Berkeley.
    6. Bontems, Philippe & Fulton, Murray, 2009. "Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 322-343, October.
    7. Chaddad, Fabio Ribas & Cook, Michael L., 2002. "Testing For The Presence Of Financial Constraints In U.S," Working Papers 26045, University of Missouri Columbia, Department of Agricultural Economics.
    8. Berit Tennbakk, 1995. "Marketing Cooperatives In Mixed Duopolies," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 33-45, January.
    9. Royer, Jeffrey S. & Bhuyan, Sanjib, 1993. "Formula Price Contracts as an Alternative to Forward Integration by Farmer Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8, pages 1-11.
    10. Franken, Jason R.V. & Cook, Michael L., 2015. "Investment Constraints in Agricultural Cooperatives," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205427, Agricultural and Applied Economics Association.
    11. Ladd, George W., 1981. "The Objective of the Cooperative Association," AAEA Miscellaneous Paper Archive 337346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Lopez, Rigoberto A. & Spreen, Thomas H., 1984. "The Impact of Alternative Payment Arrangements on the Performance of Florida Sugarcane Cooperatives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 99-108, December.
    13. Sporleder, Thomas L. & Goldsmith, Peter D., 1990. "The Risk Mitigation Aspects of Agricultural Cooperatives," Cooperatives: Their Importance in the Future Food and Agricultural System - FAMC 1990 Conference 265910, Food and Agricultural Marketing Consortium (FAMC).
    14. Drivas, Kyriakos & Giannakas, Konstantinos, 2008. "Process Innovation Activity in a Mixed Oligopsony: The Role of Marketing Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 36(2), pages 1-26.
    15. Kyriakos Drivas & Konstantinos Giannakas, 2010. "The Effect of Cooperatives on Quality‐Enhancing Innovation," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 295-317, June.
    16. Yung-Chang WANG, 2017. "A conjectural variation approach to vertical integration in agricultural cooperatives," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(5), pages 228-233.
    17. Nikos Kalogeras & Joost M.E. Pennings & Ivo. A. van der Lans & Philip Garcia & Gert van Dijk, 2009. "Understanding heterogeneous preferences of cooperative members," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 90-111.
    18. Marco Marini & Alberto Zevi, 2011. "‘Just one of us’: consumers playing oligopoly in mixed markets," Journal of Economics, Springer, vol. 104(3), pages 239-263, November.
    19. Valentinov, Vladislav & Iliopoulos, Constantine, 2012. "Property Rights Problems in Agricultural Cooperatives: A Heterodox Institutionalist Perspective," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(3).
    20. Thembi Xaba & Nyankomo Marwa & Babita Mathur-Helm, 2018. "Efficiency and Profitability Analysis of Agricultural Cooperatives in Mpumalanga, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 1-10.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:1992010108000010995. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.