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The evolution of the Dutch dairy industry and the rise of cooperatives: a research note

Published online by Cambridge University Press:  25 September 2013

KOEN FRENKEN
KOEN FRENKEN*
Affiliation:
School of Innovation Sciences, Eindhoven University of Technology, Eindhoven, The Netherlands
*
*Email: k.frenken@tue.nl
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Abstract:

Economic historians tend to explain the rise of the cooperative form in agriculture from the advantage of cooperative over private factories in reducing transaction costs with suppliers. This study provides a first test of this thesis using data on 1,130 dairy factories in The Netherlands. Indeed, we find that cooperative factories performed significantly better than private factories. The persistence of private factories in certain regions can be explained by first-mover advantages.

Type
Research Article
Information
Journal of Institutional Economics , Volume 10 , Issue 1 , March 2014 , pp. 163 - 174
Copyright
Copyright © Millennium Economics Ltd 2013 

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