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Informal Markets, Perishability and Vertical Control: Brokerage of Artisanal Landings

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Author Info
Julio Peña Torres () (ILADES-Georgetown University, Universidad Alberto Hurtado)
Abstract

This is a case study of the institutional changes occurring since the late 1990s at the Chilean Austral Hake (Merluccius Australis) artisanal fishery. This high-value exporting fishery, specialized in selling fresh-chilled products, represents a pioneering case of self-government developments within small-scale fishing communities exploiting mobile marine resources in Chile. Despite entry restrictions and global catch quotas, this fishery faced a productivity crisis between the late 1980s and the second half of the 1990s. Consequently, the fishermen started talks with the Government in order to introduce new management rules. After gradual evolution, today there prevails a well-developed system of de facto individual non-transferable quotas which are subject to a high degree of self-management by fishermen organisations. In order to understand the conditioning factors behind the exchange solutions found at this fishery, an analysis is provided of the industrial concentration and the strategies of vertical control between transacting parties along the production and marketing stages. The contractual issues analysed are: the use of informal markets, interlinkage contracting, temporal specificity due to product perishability, the use of different instruments of vertical control and the influence of increasing industrial concentration as we advance through the wholesale marketing channel and get closer to the retailing stages at final export markets.

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Publisher Info
Paper provided by Ilades-Georgetown University, School of Economics and Bussines in its series ILADES-Georgetown University Working Papers with number inv165.

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Length: 32 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:ila:ilades:inv165

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Related research
Keywords: Food production and marketing; Production chains; Vertical control; Artisanal fishery; Chilean Austral Hake;

Find related papers by JEL classification:
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean

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  10. Pena-Torres, Julio, 1997. "The Political Economy Of Fishing Regulation: The Case Of Chile," Marine Resource Economics, Marine Resources Foundation, vol. 12(4). [Downloadable!]
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