| Producer groups are organizations whose main aim is to introduce agricultural output produced by individual farmers to the market. The main question to be addressed in this study is why some cooperative arrangements in agricultural markets survive and succeed and others fail? ¿Success¿ and factors affecting success of cooperation are defined using transaction costs theory and game theory. Transaction costs theory provides insights on comparative advantage of one form of organization versus others and proposes, while game theory focuses on interdependencies between partners entering the arrangements. Data will be collected from selected farmer group organizations which are referred to as dairy producer groups in western and rift valley provinces of Kenya. |
