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The Effect of Membership Characteristics on Cooperative Pricing Policies and Success

Author

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  • Lynn Hunnicutt

Abstract

Cooperatives are unique among agribusiness firms because their owners are also their customers. This dual nature of patrons means that maximizing profit is one of several optimal strategies the cooperative may pursue. Using a survey of marketing cooperative managers, we examine how membership characteristics and cooperative structure influence cooperative policies. We also study the relationship between member characteristics, cooperative policies and cooperative success. Longer member planning horizons and independent management make profit or price maximization more likely. Cooperative success does not appear systematically related to membership characteristics or cooperative structure. Evidently, cooperative success is not easily measured or explained.

Suggested Citation

  • Lynn Hunnicutt, 2002. "The Effect of Membership Characteristics on Cooperative Pricing Policies and Success," Working Papers 2002-16, Utah State University, Department of Economics.
    • Handle: RePEc:usu:wpaper:2002-16
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    File URL: https://repec.bus.usu.edu/RePEc/usu/pdf/ERI2002-16.pdf
    File Function: First version, 2002
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    Cited by:

    1. Samuel Ahado & Levan Chkhvirkia & Jiri Hejkrlik, 2022. "Is the Success of Rural Cooperatives Conditioned by the Group Characteristics and Their Value Chain? Evidence from New Farmer Groups in Georgia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 677-702, April.

    More about this item

    Keywords

    cooperatives; retained earnings; success;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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