Promoting Cooperation: Factors Affecting Profit Sharing Among Farmers and Cold Stores in Albania
Promoting Cooperation: Factors Affecting Profit Sharing Among Farmers and Cold Stores in Albania

Author(s): Ina Pagria, Anjeza Bekolli
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Cooperation; Profit distribution; Farmers; Cold stores; Cooperative Game Theory
Summary/Abstract: The purpose of this study is to analyze some of the factors that influence the agreement of the members in the distribution of the profits that come as a result of the cooperation. The linear regression model is used as a statistical model. In the study, two links in the supply chain were identified: the farmers who produce the product and the cold stores (refrigerated warehouses) who buy it. This study was done in Albania, one of the most popular areas for the production and cultivation of apple products, in the area of Korca. There exist two moments of cooperation, one between refrigerated warehouses, which can combine joint orders to benefit from reductions in the purchase cost and the other between the farmers themselves. At the end of the study, it is noticed that the agreement of the members in the division of the profit depends on the importance they attach to maximization of the personal profit, the members’ equal distribution, the main contributor, and the higher risk taker. As one of the most useful mathematical models for dividing the result between the members of a cooperative situation, the authors suggest the application of the cooperative game theory model.

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