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Abstract

The paper stresses that in order to understand the current re-organizational processes in the food system, two kinds of social capital should be taken into account, trust and network-based social capital. Stemming from a case study, concerning the Italian processing tomato industry, it demonstrates that while trust seems to enhance social welfare, by reducing transaction costs and promoting cooperative behavior, network-based social capital mainly affects firm competitive behavior, with unpredictable effects on social welfare.

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