Contractual Relations, Control, and Quality in the Hog Sector

David A. Hennessy · John D. Lawrence

49 citations0/0 files storedApplied Economic Perspectives and Policy

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Agricultural economics and policies Agriculture and Agroindustry Studies Law, Economics, and Judicial Systems

Abstract

Abstract Agricultural production, especially hog production, is undergoing brisk reorganization. Production and marketing contracts are attenuating the control and property rights of growers. In seeking reasons for the restructuring, this paper surveys the opinions of industry participants. It then places these opinions in the context of existing theories on the nature of the firm subject to vertical production/processing inter dependencies. Special attention is devoted to contract specifications and their relationships with control and quality.

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1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1996Production, Information Costs and Economic Organization 1986The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration 1979Moral Hazard and Observability 1978Vertical Integration, Appropriable Rents, and the Competitive Contracting Process 1990Property Rights and the Nature of the Firm 1987Contract duration and relationship-specific investments: Empirical evidence from coal markets 1993Incomplete Contracts, Vertical Integration, and Supply Assurance

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2008Cost Structure and Vertical Integration between Farming and Processing 2006Vertical Integration in the Pork Industry 2010Food Quality: The Design of Incentive Contracts 2007Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers 2016Economics of Agricultural Supply Chain Design: A Portfolio Selection Approach 2010

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