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Co-operative Advantage

Listed author(s):
  • Morris Altman

Would you willingly pay more for groceries from a local co-operative than for identical brands sold by the local branch of a privately-owned firm? Morris Altman's survey-based research in Saskatchewan (Canada) indicates that consumers will pay higher prices at the co-op, even when they're not members and so don't participate in the usual member-only benefits. This suggests that, in competitive markets, consumer co-operatives enjoy a relative advantage over non-co-ops because of the value consumers place on the non-material benefits of shopping at a co-op - such as the feel-good glow they get from the co-op's investment in social cohesion.

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Paper provided by New Zealand Institute for the Study of Competition and Regulation in its series Competition & Regulation Times with number 373203.

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Date of creation: 01 Mar 2011
Handle: RePEc:vuw:vuwcrt:373203
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