SOME TESTS OF THE ECONOMIC THEORY OF COOPERATIVES: METHODOLOGY AND APPLICATION TO COTTON GINNING

Authors:
Sexton, Richard J.
Wilson, Brooks M.
Wann, Joyce J.
Type: Journal Article
Journal title: Western Journal of Agricultural Economics>Volume 14, Number 01, July 1989
Year of publication: 1989
Source: AgEcon
Collected from: AGRIS
Subject:
cooperatives
Description:

Little progress has been made in testing the often conflicting hypotheses generated from theoretical research on cooperatives. This paper addresses the deficiency by describing and applying (to California cotton ginning cooperatives) a methodology to test key hypotheses concerning (a) cooperatives’ price-output equilibrium, (b) allocative efficiency, and (c) utilization of capital inputs. The empirical results (a) are consistent with predictions from the game theory model of cooperative behavior, (b) reject the null hypothesis of absolute allocative efficiency, and (c) indicate absolute overutilization of capital inputs among the sample cooperatives.

 

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