Endogenous Membership in Mixed Duopsonies

Karantininis, Kostas; Zago, Angelo

doi:10.1111/0002-9092.00277

Cited by 77 publications

(25 citation statements)

References 6 publications

(1 reference statement)

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“…6 There is a substantial literature that examines the interaction between cooperatives and IOFs in a mixed market. See, for instance, Albaek and Schultz (1998);Cotterill (1987); Fulton and Giannakas (2001); Karantininis and Zago (2001); Rey and Tirole (2000); Sexton (1990) and Tennbakk (1995). As Albaek and Schultz (1998), for instance, point out, the strategic interaction between the cooperative and the IOF can lead to nonintuitive results-in their model, although the cooperative does not maximize profits, member behavior results in the cooperative being able to commit credibly to greater output, thus resulting in higher profits for that organization.…”

Section: Model Setupmentioning

confidence: 99%

Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement

Bontems

Fulton

2009

Journal of Economic Behavior & Organization

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Section: Model Setupmentioning

confidence: 99%

Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement

Bontems

Fulton

2009

Journal of Economic Behavior & Organization

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“…In the resulting equilibrium, cooperative members earn more than the farmers supplying the vertically integrated IOF. Karantininis and Zago (2001) show that the presence of a cooperative results in higher aggregate production and lower profits for the processing firms.…”

Section: Cooperatives and Competitionmentioning

confidence: 93%

Does acquisition of a cooperative generate profits for the buyer? The Dairyworld case

Lamprinakis¹,

Fulton

2011

Agricultural Economics

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This article examines the takeover of a cooperative (Dairyworld) by an investor-owned firm (Saputo) that was not previously present in the industry, determines if this takeover generates greater returns for the investor-owned firms (IOF), and on the basis of this evidence makes some inferences about the behavior and performance of cooperatives and IOFs. The empirical evidence strongly supports the conclusion that Saputo's stock price rose with its takeover announcement. This outcome is consistent with a number of explanations, including that Saputo was unaffected by hubris, a factor often suggested as the reason that many firms overbid when they undertake acquisitions. Dairyworld's poor liquidity and capital shortage problems, as well as a limited number of suitors, may have weakened its bargaining position in its dealings with Saputo. The observed increase in Saputo's stock price is also consistent with the possibility that, by taking over a cooperative, Saputo was able to decrease competition and thus increase its profits. A fruitful area for future research would be a rigorous theoretical and empirical determination of the impact that these various factors have on acquisition profitability. Such analysis is required before inferences about the behavior and performance of cooperatives and IOFs can be fully answered.JEL classifications: G34, L13, L21, L22, Q13

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“…Sexton and Iskow, 1993). Agricultural cooperatives thus act as a procompetitive bargaining agency for farmers, beneficially regulating market performance by acting as a 'yardsticks of competition' (Karantininis and Zago, 2001;Giannakas and Fulton, 2005). By contrast, new institutional economics regards cooperatives as an alternative transaction governance mechanism to market and hierarchical structures that are developed to internalise transactions; fill in for missing markets; or reduce risks, uncertainties and contractual failures (Sykuta and Cook, 2001;Hendrikse and Bijman, 2002;Valentinov, 2007).…”

Section: Introductionmentioning

confidence: 99%

The Boundary of Smallholder Producers’ Cooperatives: A Conceptual and Empirical Analysis

Tadesse¹,

Abate²,

Ergano³

2018

J Agricultural Economics

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In this study we explain the concepts, determinants and imperatives of boundary in smallholder producers' cooperatives both conceptually and empirically. The conceptual framework indicates the importance of the type of goods (being a club good or not) and range of activities that a cooperative provides to its members in defining a competitive boundary. Using unique organisational and market level data from Ethiopia, we then test empirically whether the observed (weak) performance of producers' cooperatives in Africa is explained by their organisational boundarythe type and range of goods or services they provide to members. The empirical results confirm that the competitiveness of producers' cooperatives is significantly correlated with the type and number of servicesi.e. cooperatives that provide club goods and a limited range of services are found to be more competitive. The results also suggest that a considerable number of cooperatives in Ethiopia engage in markets where they do not have competitive advantage. Overall, we demonstrate the importance of properly defining a viable boundaryproper selection of services (or markets) and limiting the range of servicesfor improving the competitiveness of membership-based producer cooperatives in Africa.

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Endogenous Membership in Mixed Duopsonies

Cited by 77 publications

References 6 publications

Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement

Organizational structure, redistribution and the endogeneity of cost: Cooperatives, investor-owned firms and the cost of procurement

Does acquisition of a cooperative generate profits for the buyer? The Dairyworld case

The Boundary of Smallholder Producers’ Cooperatives: A Conceptual and Empirical Analysis

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