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Seasoning a Monopsonic Processor for Collective Action amongst Pepper Producers in Costa Rica AgEcon
Saenz-Segura, Fernando J.F.; Schipper, Robert A.; D'Haese, Marijke F.C..
The small-scale pepper producers in the El Roble settlement Costa Rica face a monopsonistic market. Only one processing firm is buying the fresh pepper bunches. The processor has all bargaining power to decide on the price paid to the farmers and the quality selection criteria. The rejection rates are high, which is why farmers decided to market their pepper collectively. They started organizing the selection and transport of pepper and entered into group contracts with the firm. We use a non-linear integer simulation model to predict the price level and contractual form (individual or group contracts) which maximises the income of the firm and farmers under three conditions, namely, monopsony (firm holds all bargaining power), monopoly (producers hold all...
Tipo: Conference Paper or Presentation Palavras-chave: Collective action; Contracts; Institutional development; Costa Rica; Pepper; Agribusiness; Crop Production/Industries; O2; Q13; D4; D7.
Ano: 2006 URL: http://purl.umn.edu/25789
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