Member heterogeneity in cooperatives and its impact on joint producer organizations

• Applicant: Dr. Julia Höhler
• Subject Area: Agricultural Economics, Agricultural Policy, Agricultural Sociology
• Term: from 2017 to 2018
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 396746928

Member heterogeneity is often seen as a disadvantage of cooperatives. However, the heterogeneity of the members is particularly widespread in cooperatives in the agri-food sector due to different economic developments. Though, a comprehensive understanding of member heterogeneity, its dimensions and impacts on cooperatives and their performance is still missing. The aim of the research stay in the working group of Professor Murray Fulton at the Johnson Shoyama Graduate School of Public Policy at the University of Regina and the University of Saskatchewan in Saskatoon (CAN) is to explore the effects of different characteristics and preferences of farmers on the function of cooperatives.The beginning of the project is the development of a formal model that takes into account the dimensions of member heterogeneity and shows its impact on the example of cooperatives. This model will be used throughout the project to demonstrate the interaction of the different dimensions and to examine their impact on joint farmers' choices and their welfare. Furthermore, it is necessary to derive hypotheses for the subsequent empirical investigation. In the course of the project, possible strategies of the empirical survey are to be discussed, selected and elaborated.The research project deals in particular with the following questions:1) How does member heterogeneity affect the decision-making process in cooperatives?2) How do different types of member heterogeneity influence the function of cooperatives?

• DFG Programme: Research Fellowships
• International Connection: Canada
• Host: Professor Dr. Murray Fulton