eprintid: 48476 rev_number: 9 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/04/84/76 datestamp: 2023-12-22 12:13:39 lastmod: 2024-02-22 13:52:30 status_changed: 2024-02-22 13:52:30 type: article metadata_visibility: show creators_name: Yu, Jianyu creators_name: Bonroy, Olivier creators_name: Bouamra-Mechemache, Zohra creators_id: zohra.bouamra@tse-fr.eu creators_idrefppn: 06978681X creators_idrefppn: 166736406 creators_halaffid: 1002422 title: Quality and Quantity Incentives under Downstream Contracts: A Role for agricultural Cooperatives ispublished: pub subjects: subjects_ECO abstract: This article provides a new explanation for the positive role of cooperatives in quality provision along the agri-food chain. We study the economic rationale for cooperative acting as an intermediary between producers and a downstream (DS) firm when the DS firm cannot observe the individual quality of producers but only the average quality. We derive the optimal contract to elicit the quality and quantity incentives for producers, depending on whether the DS firm directly deals with producers or indirectly deals with them through a producer-owned cooperative. We find that when the DS firm directly deals with producers via secret contracts, the opportunistic behavior of the DS firm on producers leads to lower quality and quantity levels. The opportunistic behavior is prevented when the DS firm deals with the producer cooperative. However, the contract should offer a sufficiently high quality payment to overcome the free-riding inefficiency of the producer members. date: 2023-08-01 date_type: published id_number: 10.1111/ajae.12352 official_url: http://tse-fr.eu/pub/128862 faculty: tse divisions: tse language: en has_fulltext: FALSE doi: 10.1111/ajae.12352 view_date_year: 2023 full_text_status: none publication: American Journal of Agricultural Economics volume: vol. 105 number: n° 4 place_of_pub: Cary pagerange: 1176-1196 refereed: TRUE issn: 0002-9092 oai_identifier: oai:tse-fr.eu:128862 harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: pending harvester_local_overwrite: number harvester_local_overwrite: volume harvester_local_overwrite: creators_halaffid harvester_local_overwrite: publisher harvester_local_overwrite: creators_id harvester_local_overwrite: place_of_pub harvester_local_overwrite: date oai_lastmod: 2024-02-15T09:02:16Z oai_set: tse site: ut1 citation: Yu, Jianyu, Bonroy, Olivier and Bouamra-Mechemache, Zohra (2023) Quality and Quantity Incentives under Downstream Contracts: A Role for agricultural Cooperatives. American Journal of Agricultural Economics, vol. 105 (n° 4). pp. 1176-1196.