Ownership Structure in Agrifood Chains: The Marketing Cooperative

Posted: 24 Apr 2002

See all articles by George W.J. Hendrikse

George W.J. Hendrikse

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

W.J. Jos Bijman

Wageningen UR - Agricultural Economics Research Institute (LEI)

Abstract

Globalization, technological developments, and consumer concerns press farmers and food producers to enhance product innovation and to seek more efficient production and distribution structures. These changes in agrifood markets shift the relative importance of the investments by different chain partners. It may therefore be necessary to change the allocation of ownership of essential assets to induce agents to make those investments that generate the chain optimum. This article analyzes the impact of ownership structure on investments in a three-tier supply chain from an incomplete contracting perspective. Circumstances are determined in which a marketing cooperative is the unique first-best ownership structure.

Suggested Citation

Hendrikse, George W.J. and Bijman, W.J. Jos, Ownership Structure in Agrifood Chains: The Marketing Cooperative. Available at SSRN: https://ssrn.com/abstract=308794

George W.J. Hendrikse (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

W.J. Jos Bijman

Wageningen UR - Agricultural Economics Research Institute (LEI) ( email )

Burgemeester Patijnlaan 19
The Hague, 2502 LS
Netherlands
+31-70-3358218 (Phone)
+31-70-3615624 (Fax)

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