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Understanding Production Contracts: Testing An Agency Theory Model

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Author Info
Goodhue, Rachael E.
Rausser, Gordon C.
Simon, Leo K.

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Abstract

Production contracts are increasingly important in American agriculture. Unfortunately, little is known about the fundamental forces governing their adoption and design. In order to better-understand the underlying incentives, we construct and test an agency-theoretic model of broiler production contracts. We discuss the analysis' implications for industry participants and government policy.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1998 Annual meeting, August 2-5, Salt Lake City, UT with number 20946.

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Date of creation: 1998
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Handle: RePEc:ags:aaea98:20946

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Related research
Keywords: Industrial Organization; Livestock Production/Industries;

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References listed on IDEAS
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.:
  1. Knoeber, Charles R & Thurman, Walter N, 1994. "Testing the Theory of Tournaments: An Empirical Analysis of Broiler Production," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 155-79, April. [Downloadable!] (restricted)
  2. Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 271-92, Fall.
  3. Tiffin, Richard & Renwick, Alan, 1996. "Estimates of Production Response in the UK Cereal Sector Using Nonparametric Methods," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 23(2), pages 179-94.
  4. Benjamin E. Hermalin & Nancy E. Wallace, 1994. "The Determinants of Efficiency and Solvency in Savings and Loans," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 361-381, Autumn. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Darren Hudson, 2004. "Cross-Commodity Perspective on Contracting: Evidence from Mississippi," Industrial Organization 0412005, EconWPA. [Downloadable!]
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  2. Thomsen, Michael R. & Goodwin, H.L. & Rodriquez, Angela, 2004. "The Sky Is Falling: An Examination Of Broiler Contract Design And Grower Revenues," 2004 Annual meeting, August 1-4, Denver, CO 20418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Patterson, Paul M. & Richards, Timothy J., 2001. "Retail Contracting And Grower Prices," 2001 Annual meeting, August 5-8, Chicago, IL 20534, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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