Does quality incentive payment improve cooperative performance? A study of small French agricultural cooperatives
Does quality incentive payment improve
cooperative performance? A study of
small French agricultural cooperatives.
Ibrahima Barry*, Damien Rousselière**
Date: 25 October 2019
Time: 13h00 – 14h00
Venue: CCS Seminar Room A726, Level 8, Shepstone Building Howard
College
Abstract
Small agricultural
cooperatives are increasingly using differentiated payments based on the
quality of their members’ products. Such cooperatives make a trade-off between
the return on investment in quality and the disengagement of members from the
cooperative. Based on data from the five-year survey of small French
agricultural cooperatives, we analyse the effect of the incentive payment on
the performance of small cooperatives. In other words, we investigate how
incentive payments can reduce the problem of free riders and improve the
reputation of these cooperatives. Using a quantile regression method, while
controlling for the potential endogeneity of the incentive payment, we show that
quality based compensation can rule out the option of defrauding for
cooperative members. This remuneration has a non-linear positive effect on the
performance of small cooperatives.
Biography
Ibrahima Barry holds a PhD in Applied Economics
from the University of Grenoble-Alpes (Grenoble, France) and the Laboratory of
Applied Economics of Grenoble (Grenoble, France) and a Master's degree in
International Economics and Stakeholder Strategies, a Master's degree in
Economic Engineering and Management, with a specialization in Economic Studies
and Statistics. He is currently an
assistant professor in economics and strategies at the National School of
Agri-food of Nantes (ONIRIS-Nantes) and a member of the Laboratory of Economics
and Management of Nantes-Atlantique (LEMNA & University of Nantes).
His main research interests are industrial
organization (asymmetric information markets), environmental economics and the
social and cooperative economy. His doctoral thesis focused on the
certification of trust goods in a theoretical and empirical approach. In the theoretical approach, it followed the
line of vertical differentiation models to analyze the role of bargaining power
in the relationships between private for-profit certifiers and companies, its
effects on public regulation and market inefficiency. In the empirical approach,
he is interested in the role of incentives in agricultural cooperatives. Before
joining the National School of Agri-food of Nantes and the Laboratory of
Economics and Management of Nantes Atlantique (LEMNA), Ibrahima Barry taught
for three years at the University of Grenoble-Alpes (Grenoble, France), and
worked on fruitful and continuous scientific collaborations with it, the
Grenoble Applied Economic Laboratory(GAEL, France), the LASER (Lombardy Advanced
School of Economic Research, Italy), Agrocampus-Ouest (France), HEC Montréal
(Canada) as part of the work on the transition to the circular economy, the
limits of agricultural cooperative growth, and on private for-profit
certifiers.
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