Quality provision and governance structure variety: Pooling versus double markup
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.
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- Deepananda Herath & Zuhair Hassan & Spencer Henson, 2007. "Adoption of Food Safety and Quality Controls: Do Firm Characteristics Matter? Evidence from the Canadian Food Processing Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 299-314, September.
- repec:ner:leuven:urn:hdl:123456789/319562 is not listed on IDEAS
- Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
- Johan F.M. Swinnen & Scott Rozelle & Tao Xiang & Thijs Vandemoortele, 2008.
"A Theory of Standards-Driven Rural Development,"
LICOS Discussion Papers
19908, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Swinnen, Johan F.M. & Rozelle, Scott & Xiang, Tao & Vandemoortele, Thijs, 2009. "A Theory of Standards-Driven Rural Development," 2009 Conference, August 16-22, 2009, Beijing, China 51475, International Association of Agricultural Economists.
- John M. Antle, 1999. "The New Economics of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 993-1010.
- Patrick HERBST & Jens PRUFER, 2016. "Firms, Nonprofits, And Cooperatives: A Theory Of Organizational Choice," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(3), pages 315-343, December.
- Herbst, P. & Prüfer, J., 2007. "Firms, Nonprofits, and Cooperatives : A Theory of Organizational Choice," Discussion Paper 2007-003, Tilburg University, Tilburg Law and Economic Center.
- Herbst, P. & Prüfer, J., 2007. "Firms, Nonprofits, and Cooperatives : A Theory of Organizational Choice," Discussion Paper 2007-7, Tilburg University, Center for Economic Research.
- Anneleen Vandeplas & Bart Minten, 2015. "Food quality in domestic markets of developing economies: a comparative study of two countries," Agricultural Economics, International Association of Agricultural Economists, vol. 46(5), pages 617-628, September. Full references (including those not matched with items on IDEAS)
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