Abstract
Cooperative purchasing is becoming more and more common practice. However, many cooperative initiatives end prematurely or do not flourish. Important reasons indicated for these problems are directly or indirectly related to the unfair allocation of gains. The purpose of this paper is to analyse causes of unfairness in current cooperative practices, and in particular unfairness resulting from using the Equal Price allocation concept. I suggest that the unfair effects of this commonly used concept are caused by neglecting a specific part of the added value of cooperative initiative members. Moreover, I prove that when using the Equal Price concept organisations will receive fewer gains if they increase their volume past 38% of the total volume of a cooperative initiative. In case of a constant total volume I prove that Equal Price reaches its maximum payoff when the volume of an organisation equals 25%. I conclude by emphasizing the importance of cooperative members becoming aware of allocation concept problems. Further research will involve possible solutions to these problems.
Original language  Undefined 

Title of host publication  Proceedings of the 14th Annual ISPERA Conference, 2023 March 2005, Archamps, France 
Editors  R. Calvi, N. Merminod 
Pages  975986 
Number of pages  12 
Publication status  Published  2005 
Event  14th Annual IPSERA Conference 2005: Researches in Purchasing and Supply Management  Geneva/Archamps, France Duration: 20 Mar 2005 → 23 Mar 2005 Conference number: 14 
Other
Other  14th Annual IPSERA Conference 2005 

Country  France 
City  Geneva/Archamps 
Period  20/03/05 → 23/03/05 
Keywords
 METIS224622
 Cooperative game theory
 IR57990
 allocation of gains
 Equal Price
 Cooperative Purchasing
Prizes

IPSERA (International Purchasing and Supply Education and Research Association) Best Bursary Paper Award 2005
Fredo Schotanus (Recipient), 1 Mar 2005
Prize