This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Regulating Broiler Contracts: Tournaments Versus Fixed Performance Standards

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Tsoulouhas, Theofanis
Vukina, Tomislav

Additional information is available for the following registered author(s):

Abstract

Grower discontent with tournaments as mechanisms for settling poultry contracts can largely be attributed to the group composition risk that tournaments impose on growers. This paper focuses on the welfare effects of a widely advocated regulatory proposal to prevent integrator companies from using tournaments and replace them with schemes that compare performance to a fixed standard. The analysis shows that whereas the mandatory replacement of tournaments with fixed performance standards, absent any other rules, can decrease grower income insurance without raising welfare, replacing tournaments with fixed performance standards can simultaneously increase income insurance and welfare, provided that the piece rate is correctly specified.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/21833
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2000 Annual meeting, July 30-August 2, Tampa, FL with number 21833.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2000
Date of revision:
Handle: RePEc:ags:aaea00:21833

Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Email:
Web page: http://www.aaea.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (AgEcon Search).

Related research
Keywords: Industrial Organization; Livestock Production/Industries;

Other versions of this item:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Edward P. Lazear & Sherwin Rosen, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Tsoulouhas, Theofanis, 1999. "Do tournaments solve the two-sided moral hazard problem?," Journal of Economic Behavior & Organization, Elsevier, vol. 40(3), pages 275-294, November. [Downloadable!] (restricted)
  3. Brickley, James A & Dark, Frederick H & Weisbach, Michael S, 1991. "The Economic Effects of Franchise Termination Laws," Journal of Law & Economics, University of Chicago Press, vol. 34(1), pages 101-32, April.
    Other versions:
  4. Bengt Holmstrom, 1982. "Moral Hazard in Teams," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 324-340, Autumn. [Downloadable!] (restricted)
  5. Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 271-92, Fall.
  6. Howard Beales, J. III & Muris, Timothy J., 1995. "The foundations of franchise regulation: Issues and evidence," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 157-197, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Wang, Yanguo & Jaenicke, Edward, 2005. "Pooling, Separating, and Cream-Skimming In Relative-Performance Contracts," 2005 Annual meeting, July 24-27, Providence, RI 19522, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Fan, Maoyong & Lee, Myoungki & Wu, Steven, 2004. "Balancing Grower Protection Against Agency Concerns: An Economic Analysis of Contract Termination Damages," 2004 Annual meeting, August 1-4, Denver, CO 20392, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Roe, Brian & Wu, Steven, 2003. "The Welfare Effects Of Banning Tournaments When Commitment Is Impossible: Some Results From The Broiler Sector," 2003 Annual meeting, July 27-30, Montreal, Canada 22151, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Nadolnyak, Denis & Fletcher, Stanley & Revoredo, Cesar, 2005. "Can Rank-Order Tournaments Improve Efficiency of Quality Differentiated Crop Markets Under Marketing Loan Program Operation? The Case of U.S. Peanuts," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24703, European Association of Agricultural Economists. [Downloadable!]
  5. Hayenga, Marvin L., 2003. "Meat Packer Vertical Integration and Contract Linkages in the Beef and Pork Industries: An Economic Perspective," Staff General Research Papers 10564, Iowa State University, Department of Economics. [Downloadable!]
  6. Jaenicke, Edward C. & Wang, Yanguo, 2004. "Simulating The Impacts Of Contract Supplies In A Spot Market-Contract Market Equilibrium Setting," 2004 Annual meeting, August 1-4, Denver, CO 20313, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Olesen, Henrik Ballebye & Olsen, Rene H., 2001. "Discrimination and Strategic Group Division in Tournaments," Unit of Economics Working papers 24183, Royal Veterinary and Agricultural University, Food and Resource Economic Institute. [Downloadable!]
  8. Nadolnyak, Denis A. & Fletcher, Stanley M., 2006. "Quality Premiums and the Post-Harvest Spot Market Thinness: The Case of U.S. Peanuts," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25274, International Association of Agricultural Economists. [Downloadable!]
  9. Wu, Steven & Roe, Brian, 2004. "Tournaments, Risk Perceptions, And Fairness," 2004 Annual meeting, August 1-4, Denver, CO 20154, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Wang, Yanguo & Jaenicke, Edward C., 2005. "Pooling, Separating, and Cream-Skimming In Relative-Performance Contracts," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24639, European Association of Agricultural Economists. [Downloadable!]
  11. Wang, Yanguo & Jaenicke, Edward C., 2004. "Static And Dynamic Efficiency Of Pooled Broiler Contracts: Relative-Performance Contracts Vs. Fixed-Performance Contracts," 2004 Annual meeting, August 1-4, Denver, CO 20406, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Vukina, Tomislav, 2001. "Vertical Integration And Contracting In The U.S. Poultry Sector," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(02), July. [Downloadable!]
  13. Kosmas Marinakis & Theofanis Tsoulouhas, 2006. "Are Tournaments Optimal over Piece Rates under Limited Liability for the Principal?," Working Paper Series 009, North Carolina State University, Department of Economics, revised Sep 2006. [Downloadable!]
  14. Wu, Steven & Nazaryan, Natalie & Roe, Brian & Sporleder, Tom, 2004. "Behavioral and Welfare Effects of Tournaments and Fixed Performance Standard Contracts with Heterogeneous Agents: Some Experimental Evidence," 2004 Annual meeting, August 1-4, Denver, CO 20103, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Statistics
Access and download statistics

Did you know? All top Economics journals are listed on RePEc.

This page was last updated on 2009-11-11.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.