Role of the Distribution Structure in Responsible Trade

Titre Role of the Distribution Structure in Responsible Trade
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Auteur LACHET-TOUYA, Florence
Date 2019/09
Pagination 24 p.
Notes Université de Pau et des pays de l'Adour, Collège Sciences Sociales et Humanités, Droit, Economie, Gestion - Working Papers Series
Résumé Abstract : «Aware of the high importance of consumersíprivate information concerning their willingness-to-buy fair trade goods and taking into account the superior price they are willing to pay for this kind of goods with respect to conventional ones, we choose to feed the debate relative to the appropriateness of the di§erent potential retailing channels. We use a common agency game framework to analyze the changes in the price level according various forms or distribution organization : direct competition between upstream producers or manufacturers (or cooperatives of producers / manufacturers), creation of a cooperative at the downstream stage, delivery of the Önal good to classical retailing networks. It appears that the private information parameter as well as the nature of the relationship between suppliers on the one hand and the retailer on the other hand are the key variables that determine the price paid by consumers. The conventional retailing channel brings excessively high prices with respect to a distribution made by an entity likely to be assimilated to a cooperative because of a double margin e§ect that is lessened in the cooperative case since the latter objective function involves additional elements such as providing services to upstream actors.»

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