Quality and governance mode choice: a transaction cost approach to the wine industry
AbstractWe analyze the relationship between product quality and governance mode choice using the results of a survey of DOC Rioja wineries. Wineries that produce high-quality wines are more likely to vertically integrate than are wineries that produce low-quality wines. Consistent with Transaction Cost Economics, we find evidence that asset specificity and uncertainty are important determinants of vertical integration. Finally, the size of the winery is also an important factor that affects governance mode choice in viticulture.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44266.
Date of creation: 2008
Date of revision:
quality; governance mode choice; transaction cost; Industrial Organization;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
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