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Backward Integration By Cooperatives In Imperfectly Competitive Agricultural Raw Product Markets

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  • Matthey, Holger
  • Royer, Jeffrey S.

Abstract

This paper models backward integration by processing cooperatives into raw product production. Our analysis demonstrates that a cooperative's incentive to acquire raw product production capacity depends on its ability to restrict member production to optimal levels and the relationship between members and nonmembers in the raw product market.

Suggested Citation

  • Matthey, Holger & Royer, Jeffrey S., 1998. "Backward Integration By Cooperatives In Imperfectly Competitive Agricultural Raw Product Markets," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21014, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:21014
    DOI: 10.22004/ag.econ.21014
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    References listed on IDEAS

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    1. Clare LeVay, 1983. "Some Problems of Agricultural Marketing Co-operatives' Price/Output Determination in Imperfect Competition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(1), pages 105-110, March.
    2. Peter G. Helmberger, 1964. "Cooperative Enterprise as a Structural Dimension of Farm Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(3), pages 603-617.
    3. Perry, Martin K, 1978. "Vertical Integration: The Monopsony Case," American Economic Review, American Economic Association, vol. 68(4), pages 561-570, September.
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    Agribusiness; Marketing;

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