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Quality Measurement And Contract Design: An Example From Agriculture

  • Hueth, Brent
  • Melkonyan, Tigran A.

We examine agricultural contracting parties' incentives to employ quality measurement. Quality measurement will be used if on-farm production of ``quality'' is sufficiently cheap, and quality measurement sufficiently informative. We qualitatively test these predictions with empirical observation across fresh and processed commodities, and across regions for a single commodity.

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File URL: http://purl.umn.edu/20583
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20583.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20583
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  1. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  2. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
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