How upstream cooperatives limit downstream holdups

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 181
Issue: C
Pages: 156-168

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we consider a downstream firm negotiating with an upstream firm, and we investigate the impact of the organizational form of the upstream firm. We show that if the upstream firm is organized like a traditional cooperative, where the members have free delivery rights and where surplus is shared in proportion to the deliveries, the downstream firm is less subject to a holdup. The cooperative form makes it possible for the upstream firm to credibly commit to deliveries.

Technical Details

RePEc Handle
repec:eee:jeborg:v:181:y:2021:i:c:p:156-168
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24