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Managerial Incentives, Moral Hazard, and Structural Change in Agricultural Cooperatives

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  • Zeuli, Kimberly A.
  • Foltz, Jeremy D.

Abstract

The federated business structure exists in many sectors of the economy, but we know little about its comparative advantage. This paper explores theoretically and empirically the current dynamics of the federated cooperative system. Two hypotheses are tested: growth at the local co-op level has made the structure redundant and managerial incentives create disloyalty. We use a unique data set from a survey of local farm supply and grain marketing cooperatives in the Midwest.

Suggested Citation

  • Zeuli, Kimberly A. & Foltz, Jeremy D., 2005. "Managerial Incentives, Moral Hazard, and Structural Change in Agricultural Cooperatives," 2005 Annual meeting, July 24-27, Providence, RI 19226, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19226
    DOI: 10.22004/ag.econ.19226
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    References listed on IDEAS

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    4. Dahl, Reynold P., 1991. "Structural Change and Performance of Grain Marketing Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6, pages 1-16.
    5. Condon, Andrew M. & Cotterill, Ronald W. & Rhodes, V. James & Shaffer, James D. & Staatz, John M., 1987. "Cooperative Theory: New Approaches," Service Reports (SR) 280614, United States Department of Agriculture, Rural Development.
    6. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    7. Carman, James M., 1997. "Federated Structures for Cooperative Growth," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-23.
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    Cited by:

    1. Uzea, F. Nicoleta & Fulton, Murray E., 2014. "Mechanisms for Effective Alliance Management: Insights from a Federated Cooperative Marketing System," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(1), pages 1-32, February.

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