A Theory of Agricultural Marketing Cooperatives with Direct Selling

GATE Working Paper 1331

31 Pages Posted: 21 Nov 2013

See all articles by Maxime Agbo

Maxime Agbo

Université de Parakou

Damien Rousseliere

Agrocampus - Department of Economics, Management and Society

Julien Salanié

GATE Lyon-Saint-Etienne; University of Saint Etienne

Date Written: November 20, 2013

Abstract

We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on a local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.

Keywords: marketing cooperative, direct selling, local market, competitive

JEL Classification: D43, L11, Q13

Suggested Citation

Agbo, Maxime and Rousseliere, Damien and Salanié, Julien, A Theory of Agricultural Marketing Cooperatives with Direct Selling (November 20, 2013). GATE Working Paper 1331, Available at SSRN: https://ssrn.com/abstract=2357440 or http://dx.doi.org/10.2139/ssrn.2357440

Maxime Agbo (Contact Author)

Université de Parakou ( email )

CDE Rd
Parakou, BP 123
Benin

Damien Rousseliere

Agrocampus - Department of Economics, Management and Society ( email )

2 Rue André le Notre
Angers, 49045
France

Julien Salanié

GATE Lyon-Saint-Etienne ( email )

93, chemin des Mouilles
Ecully, 69130
France

University of Saint Etienne ( email )

6, rue basse des rives
Saint Etienne, 42023
France

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