A purchasing co-operative: the Steel Manufacturers’ Nickel Syndicate, 1901–39

This case examines the history of an unusual intermediate arrangement: a purchasing co-operative. This organisation used a distinct contractual mix that relied mainly on monitoring mechanisms. It also designed inter-firm communication lines to enhance transparency and yet to concentrate its market power. The success of the syndicate largely reflected how it used its power. As a complement to the formal model presented in Chapter 2, this case study measures the efficiency of the syndicate relative to the next best institutional alternative.