Marketing co-operatives (MCs) are analysed from an incomplete contracting perspective. The requirement of the domination of control by the members of a MC is a threat to the survival of a MC in markets where the level of asset specificity at the processing stage of production is increasing. However, a MC may remain an efficient governance structure when the increasing level of asset specificity is compensated for by a sufficient increase in the extent of product differentiation.
|Keywords||incomplete contracts, marketing cooperatives|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Hendrikse, G.W.J., & Veerman, C.P.. (2000). Marketing co-operatives (No. ERS-2000-13-ORG). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/22