Agricultural Marketing Cooperatives with Direct Selling: A Cooperative Non Cooperative Game

32 Pages Posted: 27 Jan 2015

See all articles by Maxime Agbo

Maxime Agbo

Université de Parakou

Damien Rousselière

Agrocampus Ouest

Julien Salanié

GATE Lyon-Saint-Etienne; University of Saint Etienne

Multiple version iconThere are 2 versions of this paper

Date Written: 2014

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 an oligopolistic local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. The cooperative facilitates collusion on the local market by making farmers softer competitors on that 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, competition

JEL Classification: D43, L11, Q13

Suggested Citation

Agbo, Maxime and Rousselière, Damien and Salanié, Julien, Agricultural Marketing Cooperatives with Direct Selling: A Cooperative Non Cooperative Game (2014). Available at SSRN: https://ssrn.com/abstract=2556117 or http://dx.doi.org/10.2139/ssrn.2556117

Maxime Agbo (Contact Author)

Université de Parakou ( email )

CDE Rd
Parakou, BP 123
Benin

Damien Rousselière

Agrocampus Ouest

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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