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| Yu, Jianyu. |
| The paper aims to analyze the quality provision and inclusion of farmers by a farmer-owned cooperative (co-op) when it competes with an investor-owned firm (IOF). A model of mixed oligopsonistic competition is developed to capture the endogenous participation of farmers who are heterogeneous in their efficiency to provide quality. The results highlight an advantage of the co-op: by imposing a similar quality standard to the one imposed by the IOF, the co-op may drive the IOF out of the market. Due to this advantage, it is more likely that the co-op will set a high quality standard when the minimum quality standard is costly to farmers. This advantage, however, may induce an inefficient outcome if providing a high quality product involves a high fixed cost. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Agricultural cooperative; Mixed oligopsonistic competition; Farmer inclusion; Quality standard; Agribusiness; Industrial Organization; Q12; Q13; L1; L2. |
| Ano: 2009 |
URL: http://purl.umn.edu/51553 |
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| Bouamra-Mechemache, Zohra; Yu, Jianyu. |
| Protected Designation of Origin (PDO) is a public label that is used by the European Union as a tool to sustain the competitiveness and the profitability of agricultural sector and in particular to maintain rural activity in less favored areas. However, in PDO supply chain, many farmers deal with relatively few processing firms. In this framework, it is not clear that producers under such protective policy would have incentive to adopt costly measures to improve their product qualities and accept the restrictions on their production practices. Taking into account the vertical structure of the PDO supply chain, we develop a model of oligopoly and oligopsony competition to investigate the conditions under which PDO producers set high quality requirements on... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Marketing. |
| Ano: 2011 |
URL: http://purl.umn.edu/103607 |
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