That sticky feeling: The evolution and impact of wool cooperatives in the American West, 1880–1930

Abstract This article examines wool cooperatives in the American West between 1880 and 1930, demonstrating how institutional requirements systematically transformed democratic marketing organizations through capacity-based selection pressures. Analysis of government reports and trade publications reveals that individual associations experienced extreme volatility despite aggregate growth statistics, with survival rates correlating strongly with organizational capacity. The sophisticated marketing tools that emerged – binding multiyear contracts and deferred payment structures – imposed fixed costs and liquidity demands that operated as effective membership filters, systematically excluding smaller producers. While cooperative market share peaked in the early 1920s before declining substantially by 1930, western geographic concentration increased, revealing selection by producer characteristics rather than reduced crisis motivation. This research extends the Hoffman and Libecap framework by demonstrating how internal producer heterogeneity reshaped institutional objectives despite commodity characteristics favouring broad-based cooperation.