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Registros recuperados: 40
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"Vertical Market Power" as Oxymoron: Getting Convergence Mergers Right AgEcon
Brennan, Timothy J..
"Vertical market power" is a contradiction in terms because "market power" is essentially horizontal-that is, it depends on relationships of firms within markets. FERC invokes the term to assess "convergence" mergers between electricity generators and natural gas suppliers. It misapplies Department of Justice guidelines for vertical mergers and fails to identify exceptions to a presumption that market power depends only on competitive conditions at any single stage. A three-stage test can assess whether convergence mergers resemble horizontal ones. The key stage is the third: A convergence merger is more problematic the less vertical it is-that is, if the acquiring generator had no prior dealings with the acquired gas supplier. FERC's analyses in leading...
Tipo: Working or Discussion Paper Palavras-chave: Vertical mergers; Electricity restructuring; Vertical integration; Convergence; Energy regulation; Resource /Energy Economics and Policy; L40; L94; L22; D43.
Ano: 2001 URL: http://purl.umn.edu/10871
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Managing Risk in Farming: Concepts, Research, and Analysis AgEcon
Harwood, Joy L.; Heifner, Richard G.; Coble, Keith H.; Perry, Janet E.; Somwaru, Agapi.
The risks confronted by grain and cotton farmers are of particular interest, given the changing role of the Government after passage of the 1996 Farm Act. With the shift toward less government intervention in the post-1996 Farm Act environment, a more sophisticated understanding of risk and risk management is important to help producers make better decisions in risky situations and to assist policymakers in assessing the effectiveness of different types of risk protection tools. In response, this report provides a rigorous, yet accessible, description of risk and risk management tools and strategies at the farm level. It also provides never-before-published data on farmers' assessments of the risks they face, their use of alternative risk management...
Tipo: Report Palavras-chave: Crop insurance; Diversification; Futures contracts; Leasing; Leveraging; Liquidity; Livestock insurance; Marketing contracts; Options contracts; Production contracts; Revenue insurance; Risk; Vertical integration; Farm Management; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/34081
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Location of Production and Consolidation in the Processing Industry: The Case of Poultry AgEcon
Goodwin, Harold L., Jr..
The poultry industry is the most vertically integrated of U.S. agriculture and food production and is rapidly progressing toward being one of the most concentrated. In 2002, the top 15 broiler states accounted for 94.4% of U.S. production. From 1982-2002, the top four broiler firms had a fivefold increase in Ready-to-Cook (R-T-C) pounds, a tripling of plants and four-and eight-firm concentration ratio increases of 27.9% to 48.2% and 44.1% to 66.6%. In a broad sense, chicken became more affordable, appealing, and available; total R-T-C pounds increased from 234 to 663 million pounds between 1982 and 2002.
Tipo: Journal Article Palavras-chave: Broilers; Concentration; Poultry pricing; Poultry production; Vertical integration; L11; L22; M11; Q13; R30.
Ano: 2005 URL: http://purl.umn.edu/43510
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Forest-Mill Integration: A Transaction Costs Perspective AgEcon
Niquidet, Kurt; O'Kelly, Glen.
In Canada, where public ownership of forestland is prevalent, a central decision facing policy makers is how to allocate timber resources to private forest companies. Debates tend to focus around what proportion of the annual harvest should be devoted to markets opposed to long-term contracts. To give a guide to policy makers, we surveyed forest firms from New Zealand and Sweden where this decision is based purely on a commercial basis. On average, mills source fifty percent of their fibre from the market. However, using a fractional logit model, we test whether theories from transaction cost economics influence this decision. Results are consistent with transaction cost economics; firms decrease the proportion of fibre sourced from a market with...
Tipo: Working or Discussion Paper Palavras-chave: Transaction costs; Forest tenure; Vertical integration; Environmental Economics and Policy; Resource /Energy Economics and Policy; D23; K23; L22; L73.
Ano: 2008 URL: http://purl.umn.edu/37086
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O SISTEMA INTEGRADO DE PRODUÇÃO DE FRANGO DE CORTE EM MINAS GERAIS: UMA ANÁLISE SOB A ÓTICA DA ECT AgEcon
Richetti, Alceu; Santos, Antonio Carlos dos.
Through this present piece of work we aim at analysing the integrated system of chicken production in Minas Gerais, in accordance to the Economy in Transaction Costs, seeking especifically to describing the transaction features, administration forms as well as contractual relations. Transactions in the poultry breeding business include a high degree of specificity of actives which undepend on the breeders’ category, whether small or big, besides plenty of uncertainty, quite often , mainly when working in the integrated system via contracts. Such contracts, although they may vary in shape, take certain technical indexes into considerarion, when it comes to rewarding the integrated breeders. The chief advantages in taking part in the integration system are...
Tipo: Journal Article Palavras-chave: Transaction costs; Vertical integration; Butcher’s chicken..
Ano: 2000 URL: http://purl.umn.edu/43354
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“Co-operative identity”: A theoretical concept for economic analysis of practical co-operation dynamics AgEcon
Szabo, Gabor G..
Farmers’ problems and co-ordination of agricultural activities cannot be solved simply by EU and/or government support, or by private market co-ordination institutions. Emerging producer groups and co-operatives seem vital in achieving bargaining power. Theoretically, and according to Western European (Dutch, Danish etc.) and US practical experience, one of the major important private institutions that can strengthen producers and help co-ordinate (agricultural) chains is the co-operative entity. To fulfill the basic co-operative aims and to compete in a more market-oriented environment (e.g. more liberal agricultural policies, opening European and world market, etc.) they will initiate new marketing strategies. To implement such new marketing strategies,...
Tipo: Journal Article Palavras-chave: Co-operation; Co-operative identity; Co-operative principles; Strategy; Marketing; Co-ordination; Vertical integration; Agriculture; Farm Management; Marketing.
Ano: 2007 URL: http://purl.umn.edu/107648
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The Influences of Vertical Integration and Scale of Production on Profitability of Pig Production AgEcon
Peplinski, Benedykt.
The material used in the study concerns 60 farms from the Wielkopolska region. They were divided depending on a degree of the farm integration with the slaughterhouses and on a scale of pigs production. The analyses include calculations of pigs prices, costs of pigs production and profits obtained by the farmers. Besides, the objects of the research are the main pigs production costs (feed and labour) as well as investments realised in the investigated farms.
Tipo: Conference Paper or Presentation Palavras-chave: Pigs; Vertical integration; Scale of production; Investments; Production profitability; Livestock Production/Industries; Q12.
Ano: 2005 URL: http://purl.umn.edu/24498
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INFECTIOUS DISEASE, PRODUCTIVITY, AND SCALE IN OPEN AND CLOSED ANIMAL PRODUCTION SYSTEMS AgEcon
Hennessy, David A.; Roosen, Jutta; Jensen, Helen H..
Comparative advantage motivates large trade flows in feeder animals throughout the world. Trade creates externalities when animal diseases can spread beyond the purchasing farm. When growers can choose between open and closed production systems, Nash equilibrium will likely involve socially excessive trading. Supply response to an increase in marginal costs may be positive. While first-best involves marketwide adoption of either an open-trade or closed-farm system, equilibrium may entail heterogeneous systems. If this is the case, then the feeder trade should be banned. Within a farm, we show how risk of infectious disease can create decreasing returns to scale when the technology is otherwise increasing in returns to scale. Control of disease risk...
Tipo: Working or Discussion Paper Palavras-chave: Feeder trade; Industrialization; Information; Nash equilibrium; Vertical integration; Welfare; Livestock Production/Industries.
Ano: 2004 URL: http://purl.umn.edu/18405
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Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products AgEcon
Martinez, Stephen W..
Recent changes in structure of the U.S. pork industry reflect, in many ways, past changes in the broiler industry. Production contracts and vertical integration in the broiler industry facilitated rapid adoption of new technology, improved quality control, assured market outlets for broilers, and provided a steady flow of broilers for processing. Affordable, high-quality chicken products have contributed to continual increases in U.S. chicken consumption, which has surpassed pork and beef on a per capita basis. Incentives for contracting and vertical integration in the pork industry may yield comparable results. If so, these arrangements might be expected to result in larger supplies of higher quality pork products at economical prices.
Tipo: Report Palavras-chave: Vertical coordination; Vertical integration; Contracts; Transaction costs; Technology; Chicken; Pork; Livestock Production/Industries.
Ano: 1999 URL: http://purl.umn.edu/34031
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ANALYSIS OF CHANGING METHODS OF VERTICAL COORDINATION IN THE PORK INDUSTRY AgEcon
Martinez, Stephen W.; Smith, Kevin E.; Zering, Kelly D..
This study examines the motivation behind contracts and vertical integration in the pork industry, and simulates the effects of potential improvements in coordination. Incentives related to lowering costs of measuring and sorting hogs, and protecting against opportunistic behavior associated with specific assets, can result in hog quality improvements. A framework for simulating the effects of increased coordination through contracts and vertical integration was developed and used to evaluate potential improvements in leanness. Although simulations suggest only modest changes in pork prices and supplies, gains in consumers' surplus could be substantial for larger demand shifts due to quality improvements.
Tipo: Journal Article Palavras-chave: Contracts; Hogs; Lean pork; Simulation model; Vertical coordination; Vertical integration; Industrial Organization; Livestock Production/Industries.
Ano: 1998 URL: http://purl.umn.edu/15561
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Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures AgEcon
Goldsmith, Peter D.; Gow, Hamish R..
This study utilizes strategic management theory to analyze the recent proliferation in non-commodity vertical integration producer-owned businesses in the US. The paper introduces the notion of the Value Creation Triad where ownership, competency, and control need to be aligned for success. Very related to the Triad concept is the differentiation in strategy between long and short jumping. The paper presents an empirical case of successful vertical integration by a New Zealand lamb cooperative.
Tipo: Journal Article Palavras-chave: Strategic management theory; Value added agriculture; Vertical integration; Producer-owned enterprise; Core competencies; Tacit knowledge; Productivity gap; Opportunity gap; Agribusiness.
Ano: 2005 URL: http://purl.umn.edu/8159
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THE BEEF INDUSTRY IN TRANSITION: CURRENT STATUS AND STRATEGIC OPTIONS AgEcon
Singley, Rodger; Wachenheim, Cheryl J..
In recent years, the U.S. beef industry has lost a significant portion of its historically dominant market share, due both to changes in consumer preferences and to an increase in the price of beef relative to pork and poultry. Changes within the beef industry to improve its competitive position have been slow and relatively unsuccessful. Challenges faced by the industry include a fragmented marketing channel and mistrust among its many participants, lack of specificity in product quality evaluation, and a lengthy and complex production cycle. Future success in maintaining or gaining market share will depend upon the availability of timely information, including forecasts of consumer demand, and the development of incentives to encourage effective...
Tipo: Journal Article Palavras-chave: Beef branding; Coordination; Industry structure; Marketing channel; Vertical integration; Industrial Organization.
Ano: 1999 URL: http://purl.umn.edu/14680
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Markets, Contracts, or Integration? The Adoption, Diffusion, and Evolution of Organizational Form AgEcon
Sykuta, Michael E.; Klein, Peter G.; James, Harvey S., Jr..
The rise of contract farming and vertical integration is one of the most important changes in modern agriculture. Yet the adoption and diffusion of these new forms of organization has varied widely across regions, commodities, or farm types, however. Transaction cost theories and the like are not fully effective at explaining the variation of adoption rates of different organizational forms, in part because of their inherent static nature. In order to explain the adoption, diffusion and evolution of organizational form, a more dynamic framework is required. This paper lays out such a framework for understanding the evolution of organizational practices in U.S. agriculture by drawing on existing theories of economic organization, the diffusion of...
Tipo: Conference Paper or Presentation Palavras-chave: Contracting; Vertical integration; Organizational innovation; Diffusion; Institutional and Behavioral Economics; L14; L22; Q13; O33.
Ano: 2005 URL: http://purl.umn.edu/19390
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Industrialization and Contracting in U.S. Agriculture AgEcon
Ahearn, Mary Clare; Korb, Penelope J.; Banker, David E..
This paper examines the industrialization process of U.S. agriculture by examining the trends in the number of farms, the concentration of production during the last decade, and the dynamics of farm survivability, entry, and exit underlying aggregate statistics. We next examine vertical coordination as part of the industrialization process and highlight contracting in the poultry industry. The analysis provides evidence that production is continuing to be concentrated on a smaller number of farms at a relatively rapid rate, in spite of the stability in the number of farms. Although contracting clearly dominates the broiler industry, it is less prevalent in egg and turkey production, where other forms of vertical coordination are likely established.
Tipo: Journal Article Palavras-chave: Broilers; Contracting; Eggs; Industrialization; Poultry; Structural change; Turkeys; Vertical integration; D23; D40; L11; L14 L22; L23; Q12.
Ano: 2005 URL: http://purl.umn.edu/43511
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The Applicability of Transaction Costs Economics to Vertical Integration Decision: Evidences from a Brazilian Beef Processor AgEcon
Vieira, Luciana Marques.
This article aims to explore the vertical integration decision of a beef processor from an integrated approach operations strategy and transaction costs economic theory. In this research, vertical integration as a structural decision of operations strategy determined by the occurrence of transaction costs. The paper presents one case study carried out in one beef Processor Company which illustrates the main theoretical assumptions. The results suggest that transaction costs economics helps to identify key points of major strategic decisions on vertical integration due to its behavioural perspective, reducing the effect of uncertainty and asset specificity of this decision. At the end of the paper, future research is suggested.
Tipo: Journal Article Palavras-chave: Vertical integration; Operations strategy; Transaction costs economics; Agribusiness; Agricultural Finance; Industrial Organization.
Ano: 2008 URL: http://purl.umn.edu/61471
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COOPERATIVE FORMATION AND FINANCIAL CONTRACTING IN AGRICULTURAL MARKETS AgEcon
Hueth, Brent; Marcoul, Philippe; Ginder, Roger G..
Cooperative formation in agriculture sometimes occurs in response to the exit of a private firm and typically requires substantial equity investment by participating farmers. What economic rationale can explain why farmers are willing to contribute capital to an activity that (apparently) fails to attract non-farm or "private" investment? We hypothesize that farm capital is high cost, relative to that provided by private entrepreneurs (or in other words, that there is a degree of asset fixity in farm capital) but that it engenders greater organizational commitment-which is particularly important when expected market returns are low-on the part of producers. This commitment arises from the indirect incentive properties associated with at-risk capital. We...
Tipo: Working or Discussion Paper Palavras-chave: Cooperative; Corporate financing; Moral hazard; Vertical integration; Agribusiness.
Ano: 2003 URL: http://purl.umn.edu/18478
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CONCENTRATION AND MERGERS IN U.S. WHOLESALE GROCERY MARKETS AgEcon
Connor, John M..
This report analyzes a large sample of U.S. grocery warehouse operators in 54 well defined grocery marketing areas. Almost all grocer retail chains with more than 40 supermarkets and $500 million in retail sales in 1990 are vertically integrated into wholesaling. More than four-fifths of the market areas display high levels of sales concentration (four-firm concentration greater than 60 percent). The 1992 merger between Super Value and Wetterau violated federal merger enforcement guidelines in at least four market areas, and several more horizontal mergers between merchant grocery wholesalers have been consummated since then.
Tipo: Working or Discussion Paper Palavras-chave: Grocery wholesale trade; Food retail trade; Market concentration; Mergers and acquisitions; Vertical integration; Antitrust policy; Food distribution; Geographic market definition; Agribusiness.
Ano: 1997 URL: http://purl.umn.edu/28683
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Determinants of Farm Household Income Diversification in the United States: Evidence from Farm-Level Data AgEcon
Mishra, Ashok K.; Erickson, Kenneth W.; Harris, James Michael; Hallahan, Charles B.; Uematsu, Hiroki.
This study examines the determinants of income diversification of farm households in the United States. Farm households allocate their time between farm and off-farm activities to help stabilized household income (consumption). What characterizes those households who engage in off-farm activities? Is there any pattern over time? Using 1999, 2003 and 2007 farm-level data from the USDA’s Agricultural Resource Management Survey (ARMS), this study estimates intensity of off-farm income (or income diversification). The results show that older operators, full owners, and small farms have higher intensity of off-farm income in total household income. In contrast, dairy farms, vertically coordinated farms and farms located in the Southern and Pacific regions have...
Tipo: Journal Article Palavras-chave: Tobit; Income diversification; Vertical integration; Tenure; Farm households; Agricultural Finance; Consumer/Household Economics; D1; J2; Q12.
Ano: 2010 URL: http://purl.umn.edu/61632
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The Integration of Rural Households into Ruminant Livestock Industries in China AgEcon
Waldron, Scott A.; Brown, Colin G.; Longworth, John W..
A major determinant of rural development in China is the way by which rural households integrate with rural industries. Three forms of integration – market integration, vertical integration and integration through local groups – are investigated. Policy measures that may facilitate household integration, household specialisation and market segmentation are identified. Findings for the ruminant livestock sector are widely applicable to other agricultural industries in China.
Tipo: Conference Paper or Presentation Palavras-chave: China; Rural development; Livestock; Markets; Vertical integration; Livestock Production/Industries; Q13; Q18; L1.
Ano: 2006 URL: http://purl.umn.edu/25318
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Policy, Federalism, and Regulating Broadband Internet Access AgEcon
Brennan, Timothy J..
Following recent telecommunications mergers, local (mostly municipal and county) governments and the federal government are fighting over who should determine whether cable television systems must make their facilities available to unaffiliated providers of high-speed ("broadband") Internet service. This intergovernmental dispute is only the latest in a series of such clashes regarding competition and communications policy. A brief review of the policy suggests that substantively, local open-access requirements are not yet warranted. However, the economics of federalism, primarily that the relevant markets are local, indicates that local governments should have the right to choose these policies, perhaps erroneously. Federal preemption could prevent...
Tipo: Working or Discussion Paper Palavras-chave: Federalism; Internet; Regulation; Vertical integration; Research and Development/Tech Change/Emerging Technologies; H1; L5; L1.
Ano: 2001 URL: http://purl.umn.edu/10823
Registros recuperados: 40
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