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Quota Leasing as a Competitive Strategy: A Story of Chicken Feed, Laying Hens, and Eggs


  • Abraham Hollander


This paper investigates why, under supply control by a marketing board, production quota originally given to downstream producers may ultimately end up in the hands of the latters' upstream suppliers who will lease them back to their original owners. A link between the extent of leasing and the price of quota is established. Finally, a rationale is provided explaining why such leasing contracts contain tying and exclusivity clauses.

Suggested Citation

  • Abraham Hollander, 1990. "Quota Leasing as a Competitive Strategy: A Story of Chicken Feed, Laying Hens, and Eggs," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 617-629, August.
  • Handle: RePEc:cje:issued:v:23:y:1990:i:3:p:617-29

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    Cited by:

    1. Lee, Michelle & Unterschultz, James R. & Lerohl, Mel L., 2001. "Supply Chain Competency: Recipe For Cereal And Livestock Marketing In Alberta?," Project Report Series 24050, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Ulrich Blum, 2009. "Cartel identification in spatial markets," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 29(2), pages 137-159, October.
    3. Veltins, Michael A. & Schaller, Armin & Blum, Ulrich, 2004. "The East German Cement Cartel : An Inquiry into Comparable Markets, Industry Structure, and Antitrust Policy," Dresden Discussion Paper Series in Economics 04/04, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.

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