Service pricing, agent efficiency and membership commitment in mixed duopsonies

The agricultural co-ops are the leading and oriented organizational pattern of agricultural industrialization in China. But during the process of co-ops there exists the problem of attracting more producers to join by improving its competence with the IOF. In this paper we present a simple two-stages mixed duopsonies model where the co-op and IOF compete in the input market. The impact on member commitment of pricing strategy of co-op and IOF are analyzed through the comparison of welfare of members. The results indicate that the objective set by co-op affects the pricing strategy as well as agent efficiency of co-op, which then has significant effect on member commitment. Implications for government policies and management rules are also discussed.