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Endogenous market structure and the cooperative firm

Author

Listed:
  • Hueth, Brent
  • Moschini, Giancarlo

Abstract

When the threat of entry by followers includes cooperative firms, the maximum fixed cost that a profit maximizing leader can endure is endogenous. The aggressive strategy required for entry-deterrence curtails the leader’s expected profit and can discourage its initial entry. In such circumstances a cooperative firm may yet be viable, despite having a cost handicap and no first-mover advantage

Suggested Citation

  • Hueth, Brent & Moschini, Giancarlo, 2014. "Endogenous market structure and the cooperative firm," ISU General Staff Papers 201401010800001565, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201401010800001565
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    Cited by:

    1. is not listed on IDEAS
    2. Panos Fousekis, 2016. "Member Coordination Costs and Spatial Entry Deterrence in a Mixed Duopsony with a Cooperative," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(3), pages 340-354, July.

    More about this item

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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