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Quality Assurance Mechanisms in Agrifood: The Case of the Spanish Fresh Meat Sector

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Author Info
Manuel González-Díaz
Marta Fernández-Barcala
Benito Arruñada ()

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Abstract

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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File URL: http://www.econ.upf.edu/docs/papers/downloads/637.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 637.

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Date of creation: Sep 2001
Date of revision: Mar 2002
Handle: RePEc:upf:upfgen:637

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Related research
Keywords: Quality assurance; co-branding; agriculture; vertical integration; contracts;

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Find related papers by 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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Monteverde, Kirk & Teece, David J, 1982. "Appropriable Rents and Quasi-Vertical Integration," Journal of Law & Economics, University of Chicago Press, vol. 25(2), pages 321-28, October.
  2. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr. [Downloadable!] (restricted)
  4. Blois, K J, 1972. "Vertical Quasi-Integration," Journal of Industrial Economics, Blackwell Publishing, vol. 20(3), pages 253-72, July. [Downloadable!] (restricted)
  5. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law & Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
  6. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August. [Downloadable!] (restricted)
  7. Shapiro, Carl, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 659-79, November. [Downloadable!] (restricted)
  8. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
  9. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  10. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Innes, Brian & Kerr, William & Hobbs, Jill, 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. [Downloadable!]
  2. Brent Hueth & Maro Ibarburu & James Kliebenstein, 2005. "Business Organization and Coordination in Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa," Center for Agricultural and Rural Development (CARD) Publications 05-wp415, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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