CONTRACTING STRATEGIES FOR EU TRACEABILITY REQUIREMENTS

A principal-agent problem was specified to define the equilibrium solution of a contracting strategy for a U.S. supplier exporting wheat to meet EU traceability requirements. The buyer (principal) offers a contract, the supplier (agent) accepts the contract, and then the supplier decides whether to offer a contract to the farmer. Nature at each level of the supply chain represents uncertainty due to adventitious commingling and imperfect information. Results indicate farmers would require 9 c/bu and suppliers 8 c/bu to induce their participation in the contracting strategy.


Issue Date:
2006
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/23535
Total Pages:
22
Series Statement:
Agribusiness & Applied Economics Report No. 577




 Record created 2017-04-01, last modified 2017-08-24

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