IDEAS home Printed from https://ideas.repec.org/a/ags/jlcoop/244008.html
   My bibliography  Save this article

The Neoclassical Theory of Cooperatives: Part I

Author

Listed:
  • Royer, Jeffrey S.

Abstract

The theory of the firm contained in most textbooks is inadequate for understanding the economic behavior of cooperatives because some assertions about firm behavior, such as profit maximization, may be inappropriate for cooperatives. This article provides an introduction to the neoclassical theory of cooperatives, which has been useful for generating insights into the behavior of cooperatives in various market structures, helping cooperatives develop business strategies consistent with their objectives, and informing public policy decisions concerning cooperatives. Part I of this article presents the basic elements of the neoclassical theory as it pertains to farm supply cooperatives.

Suggested Citation

  • Royer, Jeffrey S., 2014. "The Neoclassical Theory of Cooperatives: Part I," Journal of Cooperatives, NCERA-210, vol. 28, pages 1-20.
    • Handle: RePEc:ags:jlcoop:244008
    DOI: 10.22004/ag.econ.244008
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/244008/files/PARTI_FINALVERSION.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.244008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Staatz, John M., 1987. "Recent Developments in the Theory of Agricultural Cooperation," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 2, pages 1-22.
    2. Royer, Jeffrey S. & Smith, Darnell B., 2007. "Patronage Refunds, Producer Expectations and Optimal Pricing by Agricultural Cooperatives," Journal of Cooperatives, NCERA-210, vol. 20, pages 1-18.
    3. Peter Helmberger & Sidney Hoos, 1962. "Cooperative Enterprise and Organization Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(2), pages 275-290.
    4. Richard J. Sexton, 1984. "Perspectives on the Development of the Economic Theory of Co-operatives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(2), pages 423-436, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nazik Beishenaly & Frédéric Dufays, 2023. "Entrepreneurial ecosystem for cooperatives: The case of Kyrgyz agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1173-1198, December.
    2. Theodoros Skevas & Jasper Grashuis, 2023. "Evaluating dynamic productivity change of US farm supply cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1238-1253, October.
    3. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    4. Viergutz, Tim & Schulze-Ehlers, Birgit, 2018. "Member Commitment and Switching Decisions in Dairy Cooperatives – A Factorial Survey," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276864, International European Forum on System Dynamics and Innovation in Food Networks.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petraglia, Lisa M. & Rogers, Richard T., 1991. "The Impact of Agricultural Marketing Cooperatives on Market Performance in U.S. Food Manufacturing Industries for 1982," Research Reports 25175, University of Connecticut, Food Marketing Policy Center.
    2. Michael Higl, 2003. "Vertikale Kooperation im Oligopol Die Gestaltung der Genossenschaftsorganisation als strategischer Zug," Discussion Paper Series 243, Universitaet Augsburg, Institute for Economics.
    3. Saïsset, L.A. & Couderc, J.P., 2013. "Les trois dimensions de la gouvernance coopérative : à la recherche d'un équilibre instable. Le cas des caves coopératives en Languedoc-Roussillon [France]," Working Papers MoISA 201302, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    4. Royer, Jeffrey S. & Bhuyan, Sanjib, 1993. "Formula Price Contracts as an Alternative to Forward Integration by Farmer Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8, pages 1-11.
    5. George Hendrikse & Li Feng, 2013. "Interfirm cooperatives," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 26, Edward Elgar Publishing.
    6. Hailu, Getu & Weersink, Alfons & Minten, Bart J., 2015. "Rural Organizations, Agricultural Technologies and Production Efficiency of Teff in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211702, International Association of Agricultural Economists.
    7. Hueth, Brent & Taylor, Christopher W., 2013. "Spatial Competition in Agricultural Markets: A Discrete-Choice Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150506, Agricultural and Applied Economics Association.
    8. Bhuyan, Sanjib & Royer, Jeffrey S., 1992. "Cooperative Incentives for Vertical Integration: The Bilateral Monopoly Case," 1992 Annual Meeting, August 9-12, Baltimore, Maryland 271391, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Haddad, Nora Ourabah & Ton, Giel & Taher Sraïri, Mohamed & Bijman, Jos, 2017. "Organisational Challenges of Moroccan Dairy Cooperatives and the Institutional Environment," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 8(3), August.
    10. A. M. Hind, 1994. "Cooperatives – Under Performers By Nature? An Exploratory Analysis Of Cooperative And Non‐Cooperative Companies In The Agri‐Business Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 213-219, May.
    11. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    12. Valentinov, Vladislav & Iliopoulos, Constantine, 2012. "Property Rights Problems in Agricultural Cooperatives: A Heterodox Institutionalist Perspective," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(3).
    13. Thembi Xaba & Nyankomo Marwa & Babita Mathur-Helm, 2018. "Efficiency and Profitability Analysis of Agricultural Cooperatives in Mpumalanga, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 1-10.
    14. Parliament, Claudia & Lerman, Zvi & Fulton, Joan R., 1990. "Performance of Cooperatives and Investor-Owned Firms in the Dairy Industry," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 5, pages 1-16.
    15. Fischer, Martin L. & Hammond, Jerome W. & Dahl, Dale C., 1981. "Impacts Of Farm Supply Cooperatives On Oligopolistic Farm Input Markets: A Theoretical Analysis," Staff Papers 13746, University of Minnesota, Department of Applied Economics.
    16. Cotterill, Ronald W., 1997. "The Performance of Agricultural Marketing Cooperatives in Differentiated Product Markets," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-13.
    17. Asproudis, Elias & Filippiadis, Eleftherios, 2021. "Bargaining for Community Fishing Quotas," MPRA Paper 107409, University Library of Munich, Germany.
    18. Hueth, Brent & Marcoul, Philippe, 2007. "The Cooperative Firm as Monitored Credit," Staff Paper Series 508, University of Wisconsin, Agricultural and Applied Economics.
    19. Marco A. MARINI & Paolo POLIDORI & Desiree TEOBALDELLI & Alberto ZEVI, 2015. "Welfare Enhancing Coordination In Consumer Cooperatives Under Mixed Oligopoly," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 505-527, September.
    20. Helmut M. Dietl & Tobias Duschl & Martin Grossmann & Markus Lang, 2013. "Explaining Cooperative Enterprises through Knowledge Acquisition Outcomes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(3-5), pages 258-271, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlcoop:244008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daksuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.