If profit-maximizing farmers are free to join or not to join a cooperative, it may appear reasonable to assume that a cooperative will exist only when it has cost advantaged over non-cooperative marketing. This paper presents a model in which that result fails. Every individual farmer chooses...

This paper presents a model of economic behavior that explicates the phenomenon known as “orderly marketing,†which was a main objective of the Marketing Orders agricultural program introduced early in the New Deal. Recent analyses of marketing orders start with an implicit assumption...

This paper presents a model of economic behavior that explicates the phenomenon known as“orderly marketing,” which was a main objective of the Marketing Orders agricultural programintroduced early in the New Deal. Recent analyses of marketing orders start with an implicitassumption that...