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Quality and Self-Regulation in Agricultural Markets: How Do Producer Organisations Make the Rules?

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  • Zago, Angelo M

Abstract

The paper focuses on Producer Organisations (POs) and studies the interaction of asymmetric information and the democratic process in the quality choices of a group of heterogeneous producers facing an opportunity to gain from their collective capacity to establish a reputation for their products. It makes the PO's choice of remuneration scheme endogenous and distinguishes between a constitutional and a working phase. It compares different equilibria, according to which type of producer is in the majority, and it finds that, irrespective of the constitutional rules adopted, the quality level provided by the group is higher or lower than the first-best according to the producers in the majority. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Zago, Angelo M, 1999. "Quality and Self-Regulation in Agricultural Markets: How Do Producer Organisations Make the Rules?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(2), pages 199-218, June.
    • Handle: RePEc:oup:erevae:v:26:y:1999:i:2:p:199-218
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    Cited by:

    1. Loïc Henry, 2023. "Adapting the designated area of geographical indications to climate change," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1088-1115, August.
    2. Sabine Duvaleix & Marie Lassalas & Laure Latruffe & Vasilia Konstantidelli & Irene Tzouramani, 2020. "Adopting Environmentally Friendly Farming Practices and the Role of Quality Labels and Producer Organisations: A Qualitative Analysis Based on Two European Case Studies," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    3. Philippe Mahenc, 2017. "Honest versus Misleading Certification," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(2), pages 454-483, June.
    4. Fulvio Fontini & Katrin Millock & Michele Moretto, 2018. "Collective reputation with stochastic production and unknown willingness to pay for quality," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 387-410, April.
    5. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
    6. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    7. Tauber, Ramona & Anders, Sven M. & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    8. Liang, Qiao & Hendrikse, George, 2016. "Pooling and the yardstick effect of cooperatives," Agricultural Systems, Elsevier, vol. 143(C), pages 97-105.
    9. Merel, Pierre R. & Saitone, Tina L. & Sexton, Richard J., 2009. "Cooperatives and Quality-Differentiated Markets: Strengths, Weaknesses, and Modeling Approaches," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(2), pages 1-24.
    10. Armelle Mazé, 2005. "Contract Law and the self-enforcing range of contracts in agriculture," Working Papers halshs-00354960, HAL.

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