Making markets work: modeling agri-food systems in transition
Despite a decade of transition, the agri‐food sectors of the former command economies consistently underperform relative to their potential. Underproduction and underinvestment are generally observed. This paper develops a model of bilateral monopoly linkages between firms along an agri‐food supply...
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Published in | Canadian journal of agricultural economics Vol. 49; no. 2; pp. 181 - 202 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Oxford, UK
Blackwell Publishing Ltd
01.07.2001
Agricultural Institute of Canada |
Subjects | |
Online Access | Get full text |
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Summary: | Despite a decade of transition, the agri‐food sectors of the former command economies consistently underperform relative to their potential. Underproduction and underinvestment are generally observed. This paper develops a model of bilateral monopoly linkages between firms along an agri‐food supply chain. In the absence of competitive market forces and an efficient system of commercial law, deficient production and investment should be expected. If the agri‐food sectors of the former command economies are to realize their potential, more resources will have to be devoted to reducing the transaction costs associated with broadening markets and enforcing contracts.
Bien que dix années aient passé, le secteur agroalimentaire des anciennes économies dirigées ne cesse d'enregistrer un rendement inférieur à celui auquel on pourrait s'attendre. La sous‐production et le sous‐investissement sont monnaie courante. Les auteurs proposent un modèle reproduisant le monopole bilatéral qui existe entre les entreprises du circuit d'approvisionnement agroalimentaire. En l'absence de concurrence sur le marché et d'un régime efficace de droit commercial, une production et des investissements insuffisants sont inévitables. Pour que le secteur agroalimentaire des anciennes économies centralisées réalise son potentiel, on devra investir plus de ressources afin de réduire les frais de transaction associés à l'élargissement des marchés et de garantir le respect des contrats. |
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Bibliography: | ark:/67375/WNG-0FQDND8L-L istex:114A039EC4236BD712415BE51D2D4F5C7BEBFD47 ArticleID:CJAG181 ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0008-3976 1744-7976 |
DOI: | 10.1111/j.1744-7976.2001.tb00297.x |