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The Neoclassical Theory of Cooperatives: Part I

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  • 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
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    References listed on IDEAS

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    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.
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    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. 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).
    3. Olajide, O Adeola, 2024. "Aligning Cooperative Support Services: A Case Study of Cooperative Thrift and Credit Societies in Nigeria," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 11(1), March.
    4. 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.
    5. 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.

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