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Relational Contracting and Allocation of Decision Rights in the Agri-Food Industry: Producer Contracts and Food Safety AgEcon
Karantininis, Kostas; Graversen, Jesper T.; Rasmussen, Hans Jacob Nymann.
We apply a formal theoretical model of adaptation to two empirical settings within the agri-food industry: specialized pig production and food safety in Denmark. The objective is to allocate decision rights ex ante so that actual decisions taken ex post will optimize the profit accruing to the two parties in a contractual or integrative relation. Two applications are presented in this paper: First an actual partnership between two pork producers in Denmark. Based on detailed budgets we develop detailed schedules for the “reneging temptations” of the two partners- These are the temptations to renege on the contract during the evolution of the partnership. Using a model developed by Baker, Gibbons and Murphy (2006) we calculate equilibria using the Folk...
Tipo: Conference Paper or Presentation Palavras-chave: Theory of the firm; Adaptation theory; Contracts; Decision Rights; Pig production; Food safety; Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization; D21; L2; Q1.
Ano: 2008 URL:
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