THE EFFECT OF MARKETING COOPERATIVES ON COST-REDUCING PROCESS INNOVATION ACTIVITY

Pre-innovation Stage
(Stage 1)

wC(1)

wI(1)

8tψp_C+ p_I- 3t

8tψ +1
4tψp_C+(4tψ+1) p_I-2t(2tψ+1)

8tψ +1

2ψ(^{3t +} Pc ^- Pi )

xC(1)

8 tψ +1

2ψ + 1 + 2ψ(Pi ^-Pc)

xI(1)

8 tψ +1

Innovation Stage

r

²(^{3t +} Pc ^- Pi )

(Stage 2)

C

8 tψ +1

rI

0

r

²(^{3t +} Pc ^- Pi )

r_T

8 tψ +1

Post-innovation Stage

wC(3)

6t+(8tψ+3)P_c-2P_i

(Stage 3)

C(3)

8 tψ +1

wI(3)

_

xC(3)

1

xI(3)

0