|
AgEcon Search >
Journal of Agricultural and Resource Economics >
Volume 34, Number 2, August 2009 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/54548
|
| Title: | Do Transaction Costs and Risk Preferences
Influence Marketing Arrangements in
the Illinois Hog Industry? |
| Authors: | Franken, Jason R.V.
Pennings, Joost M.E.
Garcia, Philip |
| Keywords: | asset specificity
contracts
hogs
risk attitude
risk behavior
risk perception
transaction costs economics |
| Issue Date: | 2009-08 |
| Abstract: | Risk reduction and transaction costs are often used to explain contracting in the U.S. hog
industry with little empirical support. Using a unified conceptual framework that draws
from risk behavior and transaction cost theories, in combination with unique survey and
accounting data, we demonstrate that risk preferences and asset specificity impact Illinois
producers’ use of contracts and spot markets. In particular, producers’ investments in
specific hog genetics and human capital are related to selection of long-term marketing
contracts over spot markets. Producers who perceive greater levels of price risk and/or
are more averse are more (less) likely to use contracts (spot markets). |
| URI: | http://purl.umn.edu/54548 |
| Institution/Association: | Journal of Agricultural and Resource Economics>Volume 34, Number 2, August 2009 |
| Total Pages: | 19 |
| From Page: | 297 |
| To Page: | 315 |
| Collections: | Volume 34, Number 2, August 2009
|
Files in This Item:
| File |
Description |
Size | Format |
|---|
| JARE,Aug09,#05R,pp297-315.pdf | | 376Kb | PDF | View/Open |
|
Recommend this item
All items in AgEcon Search are protected by copyright.
|
