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Governance Structure, Perception and Innovation in Credence Food Transactions: The Role of Community Networks

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  • Pascucci, Stefano

Abstract

In this paper we use a combination of behavioral and new institutional economic perspectives to look at the transactions of “sustainable‐oriented” foods (e.g. organic food, fair trade, etc.) which often assume the characteristic of credence goods. When credence attributes are involved in the transaction (e.g. safety, fairness, etc.) information asymmetry and uncertainty tend to reduce the likelihood of different parties to enter in the transaction1. Because spot markets are unlikely to be used in this type of transactions, typical solutions are the use of hybrids, vertical integration and public monitoring (Vetter and Karantininis, 2002; Ménard and Valceschini, 2005). Moreover both consumers and producers (e.g. farmers) look at these products from a more utilitarian (cold) then a hedonic (hot) perspective. In this paper we address this issue by analyzing the effect of a “new” governance structure (GS) which is emerging in credence food transactions both at local and global level. We define this GS as a community network (CN) in which consumers and producers strongly integrate their goals by organizing a “club”.

Suggested Citation

  • Pascucci, Stefano, 2010. "Governance Structure, Perception and Innovation in Credence Food Transactions: The Role of Community Networks," 2010 International European Forum, February 8-12, 2010, Innsbruck-Igls, Austria 100591, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi10:100591
    DOI: 10.22004/ag.econ.100591
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    1. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 421-440, September.
    2. Dos Santos Ferreira, Rodolphe & Thisse, Jacques-Francois, 1996. "Horizontal and vertical differentiation: The Launhardt model," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 485-506, June.
    3. repec:dau:papers:123456789/2722 is not listed on IDEAS
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    1. Mastronardi, Luigi & Giaccio, Vincenzo & Marino, Davide & Romagnoli, Luca & Mazzocchi, Giampiero & Palmieri, Margherita, 2018. "Analysing consumer motivations and their behaviour in the Alternative Food Networks in Italy," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275645, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Isabel Miralles & Domenico Dentoni & Stefano Pascucci, 2017. "Understanding the organization of sharing economy in agri-food systems: evidence from alternative food networks in Valencia," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(4), pages 833-854, December.
    3. Val?rie Bossi Fedrigotti & Christian Fischer, 2014. "The supply chain of sweet chestnuts in South Tyrol," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(1), pages 117-137.
    4. Agata Nicolosi & Valentina Rosa Laganà & Daniel Laven & Claudio Marcianò & Wilhelm Skoglund, 2019. "Consumer Habits of Local Food: Perspectives from Northern Sweden," Sustainability, MDPI, vol. 11(23), pages 1-25, November.
    5. Emanuele Blasi & Clara Cicatiello & Barbara Pancino & Silvio Franco, 2015. "Alternative food chains as a way to embed mountain agriculture in the urban market: the case of Trentino," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-13, December.
    6. Ildikó Kovács & Marietta Balázsné Lendvai & Judit Beke, 2022. "The Importance of Food Attributes and Motivational Factors for Purchasing Local Food Products: Segmentation of Young Local Food Consumers in Hungary," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    7. Bouroullec, Melise Dantas Machado, 2020. "Les différentes gouvernances des circuits courts alimentaires de vente en ligne collective," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 371(January-M).
    8. Pascucci, Stefano & Cicatiello, Clara & Franco, Silvio & Pancino, Barbara & Davide, Marino, 2011. "Back to the Future? Understanding Change in Food Habits of Farmers' Market Customers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-22, November.
    9. Lombardi, Alessia & Pascucci, Stefano & Cembalo, Luigi & Dentoni, Domenico, 2012. "Governance Mechanisms in Food Community Networks," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144980, International European Forum on System Dynamics and Innovation in Food Networks.
    10. Oscar José Rover & Bernardo Corrado De Gennaro & Luigi Roselli, 2016. "Social Innovation and Sustainable Rural Development: The Case of a Brazilian Agroecology Network," Sustainability, MDPI, vol. 9(1), pages 1-14, December.
    11. Yaprak Kurtsal & Davide Viaggi, 2020. "Exploring Collaboration and Consumer Behavior in Food Community Networks and Constraints Preventing Active Participation: The Case of Turkey," Sustainability, MDPI, vol. 12(8), pages 1-24, April.
    12. Luigi Cembalo, 2015. "Innovation and valorization in supply chain network," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-4, December.
    13. Cembalo, Luigi & Lombardi, Alessia & Pascucci, Stefano & Dentoni, Domenico & Migliore, Giuseppina & Verneau, Fabio & Schifani, Giorgio, 2012. "The Beauty of the Commons? Consumers’ participation in Food Community Networks," 2012 AAEA/EAAE Food Environment Symposium 123531, Agricultural and Applied Economics Association.

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