| Summary: | Then, we build a model to estimate the welfare economic
impacts of marketing regulations, under the Natural Products
Marketing (B.C.) Act, and co-operative structure. We
hypothesized that WGGCA operates under a monopolistic environment
at present. If the members of WGGCA decide to incorporate the
organization into a private firm, we hypothesized that some
members of the organization will diverge and sell the products on
their own. In this case, B.C. greenhouse tomato growers will
operate under perfect competition. Therefore, we used the
monopolistic situation as our base scenario and the perfect
competitive situation as our alternative scenario.
From our study, we found that B.C. greenhouse tomato
producers gain, the consumers lose, and the society gains under
the monopolistic scenario as opposed to the competitive scenario.
Hence, WGGCA should remain as a co-operative because the members
gain. WGGCA should remain as a co-operative and increase quota
allocations in order to be competitive.
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