Quality assurance mechanisms in agrifood: the case of the Spanish fresh meat sector
AbstractThe largest fresh meat brand names in Spain are analysed here to study how quality is signalled in the agricultural and food industries and how the underlying quality-assurance organisations work. We obtain two main results. First, organisational form varies according to the specialisation of the brand name. Geographical indicators, which focus on achieving high organoleptic product attributes, rely on market contracting with individual producers because it provides stronger incentives for sustained quality improvement. In contrast, private brands rely more on hierarchy, taking advantage of its superiority in solving coordination problems. Second, the seemingly redundant coexistence of several quality indicators for a given product is explained in efficiency terms. Multiple brands are shown to be complementary, given their specialisation in guaranteeing different attributes of the product.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Agricultural Resources, Governance and Ecology.
Volume (Year): 2 (2003)
Issue (Month): 3/4 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=1
agriculture; cobranding; contracts; quality assurance; vertical integration; fresh meat; Spain.;
Other versions of this item:
- Manuel González-Díaz & Marta Fernández-Barcala & Benito Arruñada, 2001. "Quality assurance mechanisms in agrifood: The case of the Spanish fresh meat sector," Economics Working Papers 637, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2002.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
- Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
- Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
- Monteverde, Kirk & Teece, David J, 1982. "Appropriable Rents and Quasi-Vertical Integration," Journal of Law and Economics, University of Chicago Press, vol. 25(2), pages 321-28, October.
- Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
- Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Shapiro, Carl, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 659-79, November.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
- Blois, K J, 1972. "Vertical Quasi-Integration," Journal of Industrial Economics, Wiley Blackwell, vol. 20(3), pages 253-72, July.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Innes, Brian G. & Kerr, William A. & Hobbs, Jill E., 2007.
"International Product Differentiation through a Country Brand: An Economic Analysis of National Branding as a Marketing Strategy for Agricultural Products,"
6131, Canadian Agricultural Trade Policy Research Network.
- Innes, Brian G. & Kerr, William A. & Hobbs, Jill E., 2008. "International Product Differentiation Through a Country Brand: An Economic Analysis of National Branding as a Marketing Strategy for Agricultural Products," Trade Policy Briefs 43470, Canadian Agricultural Trade Policy Research Network.
- Alessandro Banterle & Stefanella Stranieri, 2013. "Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 5272-5288, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.