Cooperative versus non-cooperative spatial competition for milk
研究了乳制品企业在原料奶收购中的空间竞争，对比合作与非合作定价行为，发现德国低价格传递与合作社行为一致，且能提高加工商利润。
Although important, the spatial dimension is often neglected in studies of market power and competition in agricultural markets. This paper investigates spatial competition for raw milk between dairies under the presence of marketing cooperatives. Since observed in reality, our model is based on uniform delivered pricing and overlapping market areas. We compare spatial cooperative price matching with non-cooperative Hotelling–Smithies behaviour. Utilising a vector error correction model, we show that the observed low price transmission in Germany is in line with cooperative behaviour. This seems rational since it increases processors’ profits. The abolition of the quota system may increase price transmission.