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Quality assurance mechanisms in agrifood: The case of the Spanish fresh meat sector

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The largest fresh meat brand names in Spain are analyzed here to study how quality is signaled in agribusiness and how the underlying quality -assurance organizations work. Results show, first, that organizational form varies according to the specialization of the brand name. Publicly-controlled brand names are grounded on market contracting with individual producers, providing stronger incentives. In contrast, private brands rely more on hierarchy, taking advantage of its superiority in solving specific coordination problems. Second, the seemingly redundant coexistence of several quality indicators for a given product is explained in efficiency terms. Multiple brands are shown to be complementary, given their specialization in guaranteeing different attributes of the product.

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  • Manuel González-Díaz & Marta Fernández-Barcala & Benito Arruñada, 2001. "Quality assurance mechanisms in agrifood: The case of the Spanish fresh meat sector," Economics Working Papers 637, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2002.
    • Handle: RePEc:upf:upfgen:637
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    Cited by:

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    2. Innes, Brian G. & Kerr, William A. & Hobbs, Jill E., 2007. "International Product Differentiation through a Country Brand: An Economic Analysis of National Branding as a Marketing Strategy for Agricultural Products," Commissioned Papers 6131, Canadian Agricultural Trade Policy Research Network.

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    Keywords

    Quality assurance; co-branding; agriculture; vertical integration; contracts;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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