Transaction-cost economics and the organization of agricultural transactions
ISBN: 978-0-76230-687-9, eISBN: 978-1-84950-064-7
Publication date: 1 January 2000
Abstract
This chapter discusses the logic, hypotheses, empirical methods, and principal findings of the transaction-cost approach to economic organization as a foundation for analyzing the organization of agricultural transactions. In contrast to textbook characterizations of agriculture as the quintessential spot market, agricultural transactions display a broad range of governance arrangements. The chapter traces the use of these arrangements to the location-specific nature of investments and, especially, to temporal specificities associated with the perishability of many agricultural products. Case studies of the governance of fruit, vegetable, and dairy processing; the emergence of multinational firms in the banana trade; the evolution of contractual relations between tuna harvesters and processors; and the governance of transactions between cattle feedlots, slaughtering, and beef fabrication operations illustrate the arguments.
Citation
Masten, S.E. (2000), "Transaction-cost economics and the organization of agricultural transactions", Baye, M.R. (Ed.) Industrial Organization (Advances in Applied Microeconomics, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 173-195. https://doi.org/10.1016/S0278-0984(00)09050-7
Publisher
:Emerald Group Publishing Limited
Copyright © 2000, Emerald Group Publishing Limited