||Delivery rights to a cooperative's marketing pool can take on a value
independent of the members' equity share under certain conditions. Based
on anecdotal information, transferable delivery rights become valuable
when the pool is fixed in size (closed), members are protected from exploitation
of quasi economic rents, and have an assured "home" for their production.
The greater the potential buyers' aversion to risk, the higher the value
of the delivery right. The right has additional value if the cooperative
generates a premium per unit return due to product differentiation and
market power. Cooperatives competing with investor-owned firms in less
than purely competitive markets must be able to pay equal net returns to
members if they are to survive.