Evaluating Price Enhancement by Processing Cooperatives

摘要: Section 2 of the Capper-Volstead Act requires secretary agriculture to determine whether a cooperative has unduly enhanced its prices. There been no consensus about what level price enhancement is too high. This paper contrasts pricing and proprietary brands differentiated food products. Empirical evidence indicates that market share advertising do not generally provide cooperatives any more power enhance prices than they give firms. The suggests standard for undue enhancement, predicted in similarly structured markets.