Cooperative Marketing: Efficiency Conditions for Alliances
CANADA/CARIBBEAN BUSINESS: OPPORTUNITIES AND CHALLENGES FOR MANAGEMENT, Brunton, T., Lituchy, T., eds., Port-of-Spain: University of the West Indies Press, pp. 87-101, 1998
16 Pages Posted: 5 Jul 2010
Date Written: 1998
A major problem with cooperatives is that more highly specialized, larger, or otherwise better qualified members generally draw fewer benefits from cooperation whereas they pay a larger share of the collective expenses. Marketing cooperatives are interpreted as producing club goods for their members. Efficiency and optimality conditions can then be defined that provide incentives to stay in the group but also avoid differential rents. A part-part tariff structure is proposed to offset heterogeneity of membership structure.
Keywords: Cooperative marketing, alliances, cooperatives, club goods
JEL Classification: D71, M31
Suggested Citation: Suggested Citation