Quotation Weiss, Christoph, Pennerstorfer, Dieter. 2013. Product Quality in the Agri-Food Chain: Do Cooperatives Offer High Quality Wine? European Review of Agricultural Economics. 40 (1), 143-162.




We investigate the impact of decentralised decision-making on product quality. Comparing a cooperative and an investor-owned firm suggests that members of the cooperative have an incentive to produce too much and to free-ride on quality. Whether or not cooperatives deliver higher quality products depends on the way in which the quality of the final product is determined from the quality levels of the inputs delivered (quality aggregation) as well as the number of members of the cooperative. Empirical evidence on the Austrian wine market suggests that wines produced by cooperatives tend to be of significantly lower quality, ceteris paribus.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Review of Agricultural Economics
Citation Index SSCI
WU-Journal-Rating new VW-C, WH-B
Language English
Title Product Quality in the Agri-Food Chain: Do Cooperatives Offer High Quality Wine?
Volume 40
Number 1
Year 2013
Page from 143
Page to 162
URL http://erae.oxfordjournals.org/content/40/1/143.full.pdf+html
DOI https://doi.org/10.1093/erae/jbs008
Open Access N


Weiss, Christoph (Details)
Pennerstorfer, Dieter (Former researcher)
Institute for Economic Policy and Industrial Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5302 Agricultural economics (Details)
Google Scholar: Search