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Private Ordering, Collective Action, and the Self-Enforcing Range of Contracts. The Case of French Livestock Industry

Author

Listed:
  • Armelle Mazé

    () (SADAPT - Sciences pour l'Action et le Développement : Activités, Produits, Territoires - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Claude Ménard

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Contract enforcement is acknowledged as a major issue in Law and in Economics. Contrasting substitution and complementary perspectives with respect to the role of private versus public enforcement institutions, this article analyses how contract law can support private institutions, and enhance economic efficiency. With multilateral agreements at stake, self-regulation and reputation mechanisms at the core of private ordering have limitations that collective organizations backed by the Law help to overcome. The analysis is substantiated by empirical data from the cattle industry. Our results suggest the need for a broader approach to contract regulation by legal scholars and antitrust-authorities.

Suggested Citation

  • Armelle Mazé & Claude Ménard, 2010. "Private Ordering, Collective Action, and the Self-Enforcing Range of Contracts. The Case of French Livestock Industry," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00624288, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00624288
    DOI: 10.1007/s10657-009-9114-x
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00624288
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    Cited by:

    1. Jean-Baptiste Traversac & Hervé Lanotte, 2011. "An economic history of the Champagne contracts, lessons for regional development," ERSA conference papers ersa11p1145, European Regional Science Association.
    2. Yannis Bakos & Chrysanthos Dellarocas, 2011. "Cooperation Without Enforcement? A Comparative Analysis of Litigation and Online Reputation as Quality Assurance Mechanisms," Management Science, INFORMS, vol. 57(11), pages 1944-1962, November.

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