Farmers Gain Bargaining Power, Boost Profits Through Profit-Sharing Model
The article examines how farmers can have more power in pricing their products by sharing profits with agent-organizations. By using a middle-profit-sharing model, farmers and agents can work together more effectively. This model replaces upfront bargaining with profit-sharing after the fact, which helps avoid problems with contracts. The study also suggests that farmer cooperation can make this model even better. Additionally, the double principal-agent theory is used to improve the market for trading farmer products.