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Contract Law and the self-enforcing range of contracts in agriculture

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Author Info
Armelle Mazé () (ATOM - Analyse Théorique des Organisations et des Marchés - Université Panthéon-Sorbonne - Paris I)

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Abstract

The enforcement of contracts is necessary for efficient exchange in economic activities. The predominance in agriculture of informal contracts leads in many countries to the implementation of specific legal rules for contract law. This article emphasises the complementarities between public and private ordering when contracts are informal. We analyse the role of private contract-enforcement institution (CEI) as a support for multilateral reputation mechanisms. Our case study is focusing on interprofessional organisations, which are usually analysed as cartels having a negative impact on welfare. We demonstrate that under specific conditions, they can improve contract enforcement and thus efficiency.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00354960_v1.

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Date of creation: Nov 2005
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Handle: RePEc:hal:cesptp:halshs-00354960_v1

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Related research
Keywords: cartel; private enforcement; transaction costs; collective organization;

References listed on IDEAS
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  1. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law & Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  2. Gary D. Libecap & James L. Smith, 1999. "The Self-Enforcing Provisions of Oil and Gas Unit Operating Agreements: Theory and Evidence," NBER Working Papers 7142, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Wang, Ruqu, 1995. "Bargaining versus posted-price selling," European Economic Review, Elsevier, vol. 39(9), pages 1747-1764, December. [Downloadable!] (restricted)
  4. Menard, Claude, 1998. "Maladaptation of regulation to hybrid organizational forms," International Review of Law and Economics, Elsevier, vol. 18(4), pages 403-417, December. [Downloadable!] (restricted)
  5. Alan Schwartz, 1997. "Incomplete Contracts," Yale School of Management Working Papers ysm73, Yale School of Management. [Downloadable!]
  6. Alston, Lee J. & Libecap, Gary D. & Mueller, Bernardo, 1999. "A model of rural conflict: violence and land reform policy in Brazil," Environment and Development Economics, Cambridge University Press, vol. 4(02), pages 135-160, May. [Downloadable!]
  7. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law & Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
  8. McMillan, John & Woodruff, Christopher, 1999. "Dispute Prevention without Courts in Vietnam," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(3), pages 637-58, October.
  9. Alan Schwartz, 2004. "The Law and Economics of Costly Contracting," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 2-31, April.
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  10. Greif, Avner, 1989. "Reputation and Coalitions in Medieval Trade: Evidence on the Maghribi Traders," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 857-882, December. [Downloadable!]
  11. Sergio G. Lazzarini, 2004. "Order with Some Law: Complementarity versus Substitution of Formal and Informal Arrangements," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(2), pages 261-298, October.
  12. Chalfant, James A & Sexton, Richard J, 2002. " Marketing Orders, Grading Errors, and Price Discrimination," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(1), pages 53-66, February. [Downloadable!] (restricted)
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