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Understanding Production Contracts: Testing An Agency Theory Model

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  • Goodhue, Rachael E.
  • Rausser, Gordon C.
  • Simon, Leo K.

Abstract

Production contracts are increasingly important in American agriculture. Unfortunately, little is known about the fundamental forces governing their adoption and design. In order to better-understand the underlying incentives, we construct and test an agency-theoretic model of broiler production contracts. We discuss the analysis' implications for industry participants and government policy.

Suggested Citation

  • Goodhue, Rachael E. & Rausser, Gordon C. & Simon, Leo K., 1998. "Understanding Production Contracts: Testing An Agency Theory Model," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20946, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20946
    DOI: 10.22004/ag.econ.20946
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    References listed on IDEAS

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    4. Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(2), pages 271-292, Fall.
    5. Tiffin, Richard & Renwick, Alan, 1996. "Estimates of Production Response in the UK Cereal Sector Using Nonparametric Methods," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(2), pages 179-194.
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    Cited by:

    1. Hudson, Darren, 2001. "Cross-Commodity Perspective On Contracting: Evidence From Mississippi," Research Reports 15800, Mississippi State University, Department of Agricultural Economics.
    2. Thomsen, Michael R. & Goodwin, Harold L., Jr. & Rodriquez, Angela, 2004. "The Sky Is Falling: An Examination Of Broiler Contract Design And Grower Revenues," 2004 Annual meeting, August 1-4, Denver, CO 20418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Granoszewski, K. & Spiller, A., 2014. "Vertragliche Zusammenarbeit bei der energetischen Biomasselieferung: Einstellungen und Bindungsbereitschaften von deutschen Landwirten," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    4. Patterson, Paul M. & Richards, Timothy J., 2001. "Retail Contracting And Grower Prices," 2001 Annual meeting, August 5-8, Chicago, IL 20534, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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