On the relative advantage of cooperatives

Albæk, Svend; Schultz, Christian

doi:10.1016/s0165-1765(98)00068-8

Cited by 69 publications

(38 citation statements)

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“…Up to now, the economic literature on consumer cooperatives has mainly focused on the behaviour of these …rms under monopoly, perfect or monopolistic competition. 1 However, in developed countries, the retail industry is characterized more and more by large-scale …rms, e.g. the Cooperative Group in the UK with its wide range of retail and …nancial services.…”

Section: Introductionmentioning

confidence: 99%

Just One of Us: Consumers Playing Oligopoly in Mixed Markets

Marini

Zevi²

2010

SSRN Journal

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Abstract. Consumer cooperatives represent a highly successful example of democratic form of enterprises operating in developed countries. They are usually medium to largescale companies competing with the pro…t-maximizing …rms in the retail sector. This paper describes this situation as a mixed oligopoly in which consumer cooperatives maximize the utility of consumer-members and, in return, refund them with a share of the pro…ts corresponding to the ratio of their individual spending to the cooperative's total sales. We show that when consumers possess quasi-linear preferences over a bundle of symmetrically di¤er-entiated goods, and companies operate using a linear technology, the presence of consumer cooperatives positively a¤ects total industry output, as well as welfare. The e¤ect of cooperatives on welfare proves to be even more signi…cant when goods are either complements or highly di¤erentiated, and when competition is à la Cournot rather than à la Bertrand.Keywords: Consumer Cooperatives, Pro…t-maximizing Firms, Mixed Oligopoly. JEL codes: L13, L21, L22, L31, L33, L81, P13Date: May 2011. Corresponding author: Marco A. Marini, Università degli Studi di Urbino "Carlo Bo" and CREI, Università Roma III. Address: via Sa¢ , 42, 60129, Urbino (Italy). Tel. +39-0722-305557; Fax: +39-0722-305550. E-mail: marco.marini@uniurb.it.Alberto Zevi, Università degli Studi di Roma, La Sapienza, Roma (Italy).E-mail: alberto.zevi@uniroma1.it and zeviecon@libero.it.We wish to thank Gani Aldashev, Panu Kalmi, Michael Kopel, Clemens Lö-er, Domenico Mario Nuti, Jean-Philippe Plateau, two anonymous referees and the participants of the AISSEC Conference in Siena, the IAFEP Conference in Trento, the MDEF Workshop in Urbino, the CREI Seminar in Rome and the FUNDP seminar in Namur for their useful comments and discussions.

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Section: Introductionmentioning

confidence: 99%

Just One of Us: Consumers Playing Oligopoly in Mixed Markets

Marini

Zevi²

2010

SSRN Journal

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“…We construct a model in which producers sell their products through two distribution channels, a traditional channel and external retailers. Each producer has common increasing marginal cost technology, which follows the assumptions in related papers that discuss agricultural product distributions (e.g., Albaek and Schultz, 1998; Karantininis and Zago, 2001;Agbo et al, 2015). We believe that this assumption is also applicable to manufacturing sectors with production capacity constraints that limit their productivity and increase their marginal costs.…”

Section: Introductionmentioning

confidence: 87%

“…2 Some individual farmers seek out retailers and, then, directly negotiate and sell their agricultural products to those retailers. 3 Additionally, some regional agricultural cooperatives in Japan support their member farmers by distributing products through nationwide retailers and signing agreements for cooperative distribution of those farmers' agricultural products. 4 Although similar efforts to expand distribution channels seem to benefit the farmers, is this always the case?…”

Section: Introductionmentioning

confidence: 99%

“…Agbo et al (2015) summarize the recent trends in the role of agricultural cooperatives worldwide. 3 In such cases, some agricultural products are sold bearing the name of the agricultural producer (for instance, Mr. X's tomatoes, where X is the family name of the farmer). 4 Kawamura et al (2011) explain the case of JA (Japan Agricultural Cooperatives) Tomisato-City.…”

Section: Introductionmentioning

confidence: 99%

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Expanding distribution channels

Matsushima

2016

Asia-Pacific Journal of Accounting & Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract We provide a model in which upstream producers, whose production cost is quadratic in quantity, sell their products through two distribution channels, a traditional channel and an external retailer. Some producers (called "large" producers) supply to both channels, whereas other producers (called "small" producers) are only able to supply to the traditional channel. All producers compete in quantity in the traditional channel. The external retailer offers a nondiscriminatory per unit payment to upstream producers. We show that distribution channel expansion executed by a small producer can decrease the producer's profit and the sum of the upstream producers' profits. Terms of use: Documents in EconStor mayJEL codes: L13, D43, Q13, M31

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“…7 In other words, the cooperative's managers do not have control over farmers' output, as in Karantininis & Zago (2001), Albaek & Schultz (1998).…”

Section: Marketing Cooperative With No Direct Selling: Full Marketingmentioning

confidence: 99%

A Theory of Agricultural Marketing Cooperatives with Direct Selling

2013

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We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on a local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.

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On the relative advantage of cooperatives

Cited by 69 publications

References 1 publication

Just One of Us: Consumers Playing Oligopoly in Mixed Markets

Just One of Us: Consumers Playing Oligopoly in Mixed Markets

Expanding distribution channels

A Theory of Agricultural Marketing Cooperatives with Direct Selling

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