Agricultural marketing cooperatives with direct selling: A cooperative-non-cooperative game

M Agbo , Damien Rousselière (1) , Julien Salanie (1, 2)

1 GRANEM - Groupe de Recherche Angevin en Economie et Management
2 GATE - Groupe d'analyse et de théorie économique

We build a theoretical model to study a market structure with a marketing cooperative and direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on an oligopolistic local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. The cooperative facilitates collusion on the local market by making farmers softer competitors on that market. Conversely, direct selling may create a “healthy emulation” among farmers, leading to more production benefiting the cooperative.

Mots clés: Competition; direct selling; local market; marketing cooperative

Domaines: Sciences de l'Homme et Société

M Agbo, Damien Rousselière, Julien Salanie. Agricultural marketing cooperatives with direct selling: A cooperative-non-cooperative game. Journal of Economic Behavior and Organization, 2015, 109, pp.56-71. ⟨10.1016/j.jebo.2014.11.003⟩. ⟨hal-01392750⟩