Cash Market Or Contract? How Technology And Consumer Demand Influence The Decision
The use of contracts for producing and marketing agricultural commodities has become nearly universal in some sectors. Two factors are most frequently cited as being responsible for the use of agricultural contracts. The first, a demand-side factor, is the development of strong consumer preferences for specific qualities. The second, a supply-side factor, is technological change. In this paper, we use a principal agent framework to model how consumer demand and technology enter into a firm's decision to use contracts or the cash market.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Perry, Janet E. & Banker, David E. & Green, Robert C., 1999. "Broiler Farms' Organization, Management, and Performance," Agricultural Information Bulletins 33739, United States Department of Agriculture, Economic Research Service.
- Martinez, Stephen W., 1999. "Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products," Agricultural Economics Reports 34031, United States Department of Agriculture, Economic Research Service.
- Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 271-92, Fall.
- Peleg, Bezalel & Yaari, M E, 1975. "A Price Characterization of Efficient Random Variables," Econometrica, Econometric Society, vol. 43(2), pages 283-92, March.
- Knoeber, Charles R & Thurman, Walter N, 1994. "Testing the Theory of Tournaments: An Empirical Analysis of Broiler Production," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 155-79, April.
- Hueth, Brent & Ligon, Ethan, 1999.
"Producer Price Risk and Quality Measurement,"
Staff General Research Papers
5037, Iowa State University, Department of Economics.
- Azzam, Azzeddine M. & Schroeter, John R., 1997.
"Concentration in Beef Packing: Do Gains Outweigh Losses?,"
Agricultural and Applied Economics Association, vol. 12(1).
- Azzam, Azzeddine M. & Schroeter, John R., 1997. "Concentration in Beef Packing: Do Gains Outweigh Losses?," Staff General Research Papers 5093, Iowa State University, Department of Economics.
- Timothy J. Richards & Paul M. Patterson & Ram N. Acharya, 2001. "Price Behavior in a Dynamic Oligopsony: Washington Processing Potatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 259-271.
- Hennessy, David A. & Lawrence, John D., 1999. "Contractual Relations, Control, and Quality in the Hog Sector," Staff General Research Papers 1706, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea01:20723. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.