Quality and governance mode choice: a transaction cost approach to the wine industry
We analyze the relationship between product quality and governance mode choice using the results of a survey of DOC Rioja wineries. Wineries that produce high-quality wines are more likely to vertically integrate than are wineries that produce low-quality wines. Consistent with Transaction Cost Economics, we find evidence that asset specificity and uncertainty are important determinants of vertical integration. Finally, the size of the winery is also an important factor that affects governance mode choice in viticulture.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.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.:
- W. Coles, Jerilyn & Hesterly, William S., 1998. "The impact of firm-specific assets and the interaction of uncertainty: an examination of make or buy decisions in public and private hospitals," Journal of Economic Behavior & Organization, Elsevier, vol. 36(3), pages 383-409, August.
- Brent Hueth & Ethan Ligon, 1999.
"Agricultural Supply Response Under Contract,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 81(3), pages 610-615.
- Coles, Jerilyn W. & Hesterly, William S., 1998. "Transaction costs, quality, and economies of scale: examining contracting choices in the hospital industry," Journal of Corporate Finance, Elsevier, vol. 4(4), pages 321-345, December.
- Rachael E. Goodhue & Dale M. Heien & Hyunok Lee & Daniel A. Sumner, 2003.
"Contracts and Quality in the California Winegrape Industry,"
Review of Industrial Organization,
Springer, vol. 23(3_4), pages 267-282, December.
- Rachael Goodhue & Dale Heien & Hyunok Lee & Daniel Sumner, 2003. "Contracts and Quality in the California Winegrape Industry," Review of Industrial Organization, Springer, vol. 23(3), pages 267-282, December.
- Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March.
- Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
- Allen, Douglas W & Lueck, Dean, 1995. "Risk Preferences and the Economics of Contracts," American Economic Review, American Economic Association, vol. 85(2), pages 447-51, May.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:44266. 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.