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Informal Markets, Perishability and Vertical Control: Brokerage of Artisanal Landings

This is a case study of the institutional changes occurring since the late 1990s at the Chilean Austral Hake (Merluccius Australis) artisanal fishery. This high-value exporting fishery, specialized in selling fresh-chilled products, represents a pioneering case of self-government developments within small-scale fishing communities exploiting mobile marine resources in Chile. Despite entry restrictions and global catch quotas, this fishery faced a productivity crisis between the late 1980s and the second half of the 1990s. Consequently, the fishermen started talks with the Government in order to introduce new management rules. After gradual evolution, today there prevails a well-developed system of de facto individual non-transferable quotas which are subject to a high degree of self-management by fishermen organisations. In order to understand the conditioning factors behind the exchange solutions found at this fishery, an analysis is provided of the industrial concentration and the strategies of vertical control between transacting parties along the production and marketing stages. The contractual issues analysed are: the use of informal markets, interlinkage contracting, temporal specificity due to product perishability, the use of different instruments of vertical control and the influence of increasing industrial concentration as we advance through the wholesale marketing channel and get closer to the retailing stages at final export markets.

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Paper provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its series ILADES-Georgetown University Working Papers with number inv165.

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Length: 32 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:ila:ilades:inv165
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  1. 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.
  2. Colin W. Clark & Gordon R. Munro, 1980. "Fisheries and the Processing Sector: Some Implications for Management Policy," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 603-616, Autumn.
  3. Sethi, Rajiv & Somanathan, E, 1996. "The Evolution of Social Norms in Common Property Resource Use," American Economic Review, American Economic Association, vol. 86(4), pages 766-88, September.
  4. William E. Schworm, 1983. "Monopsonistic Control of a Common Property Renewable Resource," Canadian Journal of Economics, Canadian Economics Association, vol. 16(2), pages 275-87, May.
  5. Masten, Scott E. (ed.), 1996. "Case Studies in Contracting and Organization," OUP Catalogue, Oxford University Press, number 9780195092523, March.
  6. Braverman, Avishay & Stiglitz, Joseph E, 1982. "Sharecropping and the Interlinking of Agrarian Markets," American Economic Review, American Economic Association, vol. 72(4), pages 695-715, September.
  7. Kenney, Roy W & Klein, Benjamin, 1983. "The Economics of Block Booking," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 497-540, October.
  8. Martinez, Stephen W., 2002. "A Comparison of Vertical Coordination in the U.S. Poultry, Egg, and Pork Industries," Agricultural Information Bulletins 33773, United States Department of Agriculture, Economic Research Service.
  9. Paul Seabright, 1993. "Managing Local Commons: Theoretical Issues in Incentive Design," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 113-134, Fall.
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