|
|
| Gruber, Jennifer E.; Rogers, Richard T.; Sexton, Richard J.. |
| A common belief is that agricultural marketing cooperatives advertise less than their investor-owned counterparts, holding other factors constant. This paper presents both a conceptual and an empirical analysis that questions this conventional wisdom. Our conceptual model analyzes a cooperative’s optimal advertising-to-sales (A/S) ratio under three alternative objective functions. In each instance, the optimal A/S ratio is characterized by the well-known Dorfman-Steiner condition that also characterizes optimal advertising for an investor-owned firm. The empirical analysis examines forty-nine processed food markets, each containing at least one cooperative. The results do no support the conventional wisdom that cooperatives advertise less, ceteris paribus.... |
| Tipo: Journal Article |
Palavras-chave: Agribusiness. |
| Ano: 2000 |
URL: http://purl.umn.edu/46410 |
| |
