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Trust, contracting, and adaptation in agri-food hybrid structure

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  • Martino, Gaetano
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    Abstract

    The paper considers the relationship between trust and governance structure from a Transaction Cost Economics perspective. The role of trust in the coordinating decisions is variously conceptualized according to the theoretical view adopted by the scholars. The present study adopt the three‐level schema introduced by Williamson (1996) and suggest that determinants of trust may operate both at institutional and governance structure level. The analytical framework depicted maintains that trust may determine a reduction of ex post transaction cost in the adaptation of hybrid structure. As a consequence trust appears to be able to extend the range of existence of the hybrids. The empirical part of the study is dedicated to a case study which illustrates the emerging of conditional trust (Fritz et al., 2008) and the role of trust in the adaptation process.

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    File URL: http://mpra.ub.uni-muenchen.de/37617/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37617.

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    Date of creation: 2010
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    Publication status: Published in International Journal on Food System Dynamics 4.1(2010): pp. 305-317
    Handle: RePEc:pra:mprapa:37617

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    Related research

    Keywords: hybrid; conditional trust; adaptation; contractual relationship;

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    1. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 421-440, September.
    2. Chen, Yongmin, 2000. "Promises, Trust, and Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(1), pages 209-32, April.
    3. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-15, May.
    4. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-86, April.
    5. Arrighetti, Alessandro & Bachmann, Reinhard & Deakin, Simon, 1997. "Contract Law, Social Norms and Inter-firm Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 171-95, March.
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