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Title:Quality provision and governance structure variety: Pooling versus double markup PDF Logo
Authors:Liang, Qiao
Hendrikse, George W. J.
Huang, Zuhui
Issue Date:2010
Series/Report no.:IAMO Forum 2010, Halle (Saale), June 16 – 18, 2010: Institutions in Transition - Challenges for New Modes of Governance
Abstract:This paper examines how farmers producing differentiated quality products choose different governance structures in a non-cooperative game between farmers, enterprises, and consumers. A cooperative and an IOF (investor owned firm) coexist in equilibrium and low quality is delivered by the cooperative. The trade-off between pooling and the elimination of the double markup determines the attractiveness of cooperatives compared to IOFs.
Subjects:Quality
Cooperatives
Investor-Owned Firms
JEL:C72
L22
Q13
Document Type:Conference Paper
Appears in Collections:IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance

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