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A Model of a Bargaining Cooperative

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  • George W. Ladd

Abstract

This paper analyzes behavior of a cooperative of raw material producers. The cooperative sells a production input to producers, provides a "free" service to members, and bargains with processors for raw material price. One analysis assumes the cooperative's objective is maximization of the raw material price received by members. Another assumes the objective is maximization of quantity marketed through the cooperative. The cooperative has three instruments to manipulate to attain its objective. First-order maximization conditions for the two objectives are quite different from each other and from "marginal cost equals marginal revenue" conditions.

Suggested Citation

  • George W. Ladd, 1974. "A Model of a Bargaining Cooperative," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 509-519.
    • Handle: RePEc:oup:ajagec:v:56:y:1974:i:3:p:509-519.
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    File URL: http://hdl.handle.net/10.2307/1238603
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    Cited by:

    1. Lopez, Rigoberto A. & Spreen, Thomas H., 1984. "The Impact of Alternative Payment Arrangements on the Performance of Florida Sugarcane Cooperatives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 99-108, December.
    2. Puaha, Hubertus & Tilley, Daniel S., 2003. "Investment Decisions In New Generation Cooperatives: A Case Study Of Value Added Products (Vap) Cooperative In Alva, Oklahoma," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35069, Southern Agricultural Economics Association.
    3. Vontalge, Alan L., 1991. "A feasibility study of swine producer management cooperatives," ISU General Staff Papers 1991010108000018168, Iowa State University, Department of Economics.
    4. Han, Saim Woo, 1992. "A production and pricing decision model for the Korean agricultural cooperatives," ISU General Staff Papers 1992010108000010995, Iowa State University, Department of Economics.
    5. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A theory of agricultural marketing cooperatives with direct selling," Post-Print halshs-00949726, HAL.
    6. Kinnucan, Henry W., 1995. "Price Bargaining Without Supply Control," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 119-127, April.
    7. Esteves, Luiz A., 2014. "A Economia das Firmas Cooperadas e a Análise Antitruste [The Economics of Cooperative Firms and the Antitrust Analysis]," MPRA Paper 58908, University Library of Munich, Germany.
    8. 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.
    9. 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.
    10. Yung-Chang WANG, 2017. "A conjectural variation approach to vertical integration in agricultural cooperatives," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(5), pages 228-233.
    11. Agbo, Maxime & Rousselière, Damien & Salanié, Julien, 2015. "Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 56-71.
    12. H. Holly WANG & Jong Won PARK & Timothy BAKER, 2011. "Contracting, negotiation, and the policy change: The conflict between Korean farmers and their agricultural coo," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(10), pages 467-473.
    13. Ladd, George W., 1981. "The Objective of the Cooperative Association," AAEA Miscellaneous Paper Archive 337346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. repec:hal:journl:halshs-01098762 is not listed on IDEAS
    15. Puaha, Hubertus & Tilley, Daniel S., 2002. "Coalition Development In The Agricultural Marketing System," 2002 Annual meeting, July 28-31, Long Beach, CA 19721, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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