Mandatory Cooperatives and the Free Rider Problem: The Case of Santo Wines in Santorini, Greece

Type: Journal Article
Journal title: Annals of Public and Cooperative Economics
Year of publication: 2014
Source: AGRERI
Subject:
products
agricultural products
legislation
agricultural and rural legilslation
cooperatives
agribusiness and cooperatives
Description:

This paper addresses the issue of how the institutional environment shapes cooperatives’ ability to address the free rider problem and combat intra-organizational challenges. Particularly we focus on Santo Wines, a mandatory wine cooperative based on the island of Santorini, Greece; membership of local grape-growers in the cooperative is compulsory by  law. We shed light on Santo Wines’ options in case it loses its mandatory status and argue that the cooperative might be able to survive and succeed without its mandatory status. Further, we identify other factors, for example public policy support measures, as important determinants of Santo Wines’ success.

 

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