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Governance of the Agri-food Chains as a Vector of Credibility for Quality Signalization in Europe

  • Raynaud, Emmanuel
  • Sauvee, Loic
  • Valceschini, Egizio
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    For many agricultural products, the quality of the final products strongly depends on different stages of the productive chain. This stresses the importance of relationships between quality signal owners and suppliers in the vertical chain. Based on a New Institutional Economics analysis, the goal of this paper is twofold: (i) to design a framework to study the links between quality signaling, coordination in the supply chains and the institutional environment, (ii) to conduct a comparative analysis to identify, compare and explain the modes of organization implemented for the governance of different quality signs. The general hypothesis is that, in order to assure the credibility of a quality signal, there must be an efficient alignment between quality characteristics and governance of the supply chain. To test this general hypothesis, we have conducted a comparative analysis of 42 case studies in 3 sectors (processed meat, cheese, fruit and vegetable sectors) from 7 European countries. This diversity allows us to compare the organizations designed to govern different quality signals in different institutional environments and to test the matching between quality signals and governance structures.

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    File URL: http://purl.umn.edu/24917
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    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24917.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24917
    Contact details of provider: Web page: http://www.eaae.org
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    1. Pirrong, Stephen Craig, 1993. "Contracting Practices in Bulk Shipping Markets: A Transactions Cost Explanation," Journal of Law and Economics, University of Chicago Press, vol. 36(2), pages 937-76, October.
    2. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 4(02).
    3. Paul L. Joskow, 2002. "Transaction Cost Economics, Antitrust Rules, and Remedies," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 95-116, April.
    4. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    5. Hueth, Brent & Ligon, Ethan & Wolf, Stephen & Wu, Steven, 1999. "Incentive Instruments in Agricultural Contracts: Input Control, Monitoring, Quality Measurement, and Price Risk," Staff General Research Papers 5237, Iowa State University, Department of Economics.
    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.
    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.
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