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An Analysis of Cooperative Bargaining in the Processing Tomato Industry

Author

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  • E. M. Babb
  • S. A. Belden
  • C. R. Saathoff

Abstract

This article analyzes factors which affected the bargaining process and outcome of negotiations for the processing tomato industry in Indiana and Ohio during the 1966 growing season. Data obtained from Indiana and Ohio tomato processors, grower representatives, and growers was used to reconstruct the bargaining process to determine what factors were considered in establishing contract objectives, to determine various factors each party thought affected bargaining strength and the outcome of negotiations, and to measure attitudes about bargaining. Substantial differences were found between the parties' conception of supply and demand response and those estimated statistically. Processors and grower representatives underestimated supply response and consumers' response to higher prices. Significant differences between grower and processor attitudes toward bargaining were identified. Processors were primarily concerned about quality factors and growers with price. This suggests that a "trading off" of concessions would benefit both parties.

Suggested Citation

  • E. M. Babb & S. A. Belden & C. R. Saathoff, 1969. "An Analysis of Cooperative Bargaining in the Processing Tomato Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(1), pages 13-25.
  • Handle: RePEc:oup:ajagec:v:51:y:1969:i:1:p:13-25.
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    File URL: http://hdl.handle.net/10.2307/1238303
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    Cited by:

    1. Folwell, Raymond J. & Mittelhammer, Ronald C. & Wang, Q., 1998. "An Empirical Bargaining Model Of Price Discovery: An Application To The Washington/Oregon Asparagus Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(4), pages 1-13.
    2. French, Ben C., 1987. "Farm Price Estimation When There Is Bargaining: The Case Of Processed Fruit And Vegetables," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-10, July.
    3. Antonella Samoggia & Francesca Monticone & Gianandrea Esposito, 2022. "Governance in the Italian Processed Tomato Value Chain: The Case for an Interbranch Organisation," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    4. Iskow, Julie & Sexton, Richard, 1992. "Bargaining Associations in Grower-Processor Markets for Fruits and Vegetables," Research Reports 279811, United States Department of Agriculture, Rural Development.
    5. Folwell, Raymond J. & Mittelhammer, Ronald C. & Wang, Changru, 1997. "A Bargaining Model of Price Discovery in the Washington/Oregon Asparagus Industry," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35950, Western Agricultural Economics Association.

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