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Decision-Making in Cooperatives With Diverse Member Interests

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  • Reynolds, Bruce J.

Abstract

Agricultural producers establish and support a cooperative when it provides benefits they would not obtain by individual actions. Cooperatives are distinguished from other types of organized ventures in that owners are the primary users of services, who benefit in proportion to use. Members of a cooperative typically have diverse economic interests. These may encompass size, type and location of farm enterprises, and length of membership. Maintaining cohesiveness for building incentives to cooperate is becoming more complex as more variations in production practices and technology become available, new forms of business relationships are developed, and as consumer preferences continue to become more diverse and demanding. The objectives of this research are: first, examine the role of member consensus and policy consistency in a cooperative; second, examine member consensus and policy in a strategic framework of competition, where competitors offer individualized terms to selective producers that are difficult for cooperatives to match; and third, develop a game theory analysis for situations where cooperatives need to attract large-scale producers.

Suggested Citation

  • Reynolds, Bruce J., 1997. "Decision-Making in Cooperatives With Diverse Member Interests," Research Reports 280001, United States Department of Agriculture, Rural Development.
    • Handle: RePEc:ags:urdbrr:280001
    DOI: 10.22004/ag.econ.280001
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    Citations

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    Cited by:

    1. Sabine Duvaleix-Treguer & Jean Cordier & Vincent Hovelaque & . American Agricultural Economics Association, 2003. "Contract design for improving membership commitment in French cooperatives," Post-Print hal-02342391, HAL.
    2. Reynolds, Bruce J., 2014. "Comparing Cooperative Principles of the U.S. Department of Agriculture and the International Cooperative Alliance," Research Reports 279796, United States Department of Agriculture, Rural Development.
    3. Bijman, W.J.J. & Hendrikse, G.W.J., 2003. "Co-operatives in chains: institutional restructuring in the Dutch fruit and vegetables industry," ERIM Report Series Research in Management ERS-2003-089-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Theo Benos & Nikos Kalogeras & Frans J.H.M. Verhees & Panagiota Sergaki & Joost M.E. Pennings, 2016. "Cooperatives’ Organizational Restructuring, Strategic Attributes, and Performance: The Case of Agribusiness Cooperatives in Greece," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 127-150, January.
    5. Yanni Liang & Kai Wang & Brandi Janssen & Carri Casteel & Matthew Nonnenmann & Diane S. Rohlman, 2021. "Examination of Symptoms of Depression among Cooperative Dairy Farmers," IJERPH, MDPI, vol. 18(7), pages 1-17, April.
    6. Chin, Ming-Chin & Weaver, Robert D., 2004. "Forward Contracting Specification Through Collective Bargaining," 2004 Annual meeting, August 1-4, Denver, CO 20006, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Michael L. Cook, 2018. "A Life Cycle Explanation of Cooperative Longevity," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    8. Cabo, Paula & Rebelo, Joao, 2005. "Governance Control Mechanisms in Portuguese Agricultural Credit Cooperatives," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24623, European Association of Agricultural Economists.
    9. Nikos Kalogeras & Joost M.E. Pennings & Ivo. A. van der Lans & Philip Garcia & Gert van Dijk, 2009. "Understanding heterogeneous preferences of cooperative members," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 90-111.

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