Agricultural Production Clubs: Viability and Welfare Implications

By Corinne Langinier and Bruce A. Babcock

Consumers are in general less informed than producers about the quality of agricultural goods. To reduce he information gap, consumers can rely on standards (e.g., certification) that ensure quality and origin of the goods. These costly standards can be adopted by a group of producers of high-quality goods. The authors study the formation of such a group that they model as a club.

[Source: CARD - Iowa State University]