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If the food doesn't come-vertical coordination problems in the CIS food system: Some perils of privatization

Author

Listed:
  • James D. Gaisford

    (The University of Calgary)

  • Jill E. Hobbs

    (Scottish Agricultural College, Aberdeen)

  • William A. Kerr

    (Economics at The University of Calgary)

Abstract

Bilateral monopoly situations where few sellers confront few buyers are an important legacy of the command system in the countries of the Commonwealth of Independent States. Both suppliers and buyers typically attempt to manipulate prices by distorting the market. The resulting quantity reductions at each stage of food production, processing, and distribution are causing severe ongoing market inefficiencies and may lead to catastrophic short-term disruptions in localized markets. Consequently, reform efforts should be redirected toward the development of both a business communications infrastructure that will foster competition, and a legal apparatus that will be capable of enforcing efficient contracts. © 1995 by John Wiley & Sons, Inc.

Suggested Citation

  • James D. Gaisford & Jill E. Hobbs & William A. Kerr, 1995. "If the food doesn't come-vertical coordination problems in the CIS food system: Some perils of privatization," Agribusiness, John Wiley & Sons, Ltd., vol. 11(2), pages 179-186.
    • Handle: RePEc:wly:agribz:v:11:y:1995:i:2:p:179-186
    DOI: 10.1002/1520-6297(199503/04)11:2<179::AID-AGR2720110210>3.0.CO;2-#
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    References listed on IDEAS

    as
    1. Myerson, Roger B. & Satterthwaite, Mark A., 1983. "Efficient mechanisms for bilateral trading," Journal of Economic Theory, Elsevier, vol. 29(2), pages 265-281, April.
    2. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    3. Richard L. Gady & Robert H. Peyton, 1992. "A Food Processor's Perspective on Trade and Investment Opportunities in Eastern Europe and the Former Soviet Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1179-1183.
    4. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
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    Cited by:

    1. McNeil, Allan O. & Kerr, William A., 1997. "Vertical coordination in a post-command agricultural system--Can Russian dairy farms be transformed?," Agricultural Systems, Elsevier, vol. 53(2-3), pages 253-268.
    2. Yakunina, Alla V. & Esipov, Victor E. & Menkhaus, Dale J. & Bastian, Christopher T., 1998. "Russian Food System In Transition," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(3), pages 1-15.

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