Forward Integration by Farmer Cooperatives: Comparative Incentives and Impacts

摘要: A model of a three-stage vertical market structure consisting agricultural producers. an assembler, and processor is developed to analyze the incentives farmer cooperatives may have for integrating forward into processing activities evaluate comparative impacts cooperative integration on producers consumers. Although by generally provides benefits both consumers under fixed-proportions technology constant assembly costs. existence incentive appears depend upon ability restrict raw product output its optimal levels.