The Sharing of Risks and Returns in Prairie Special Crops: A Transaction Cost Approach
- 15 July 1995
- journal article
- Published by Wiley in Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie
- Vol. 43 (2) , 237-258
- https://doi.org/10.1111/j.1744-7976.1995.tb00121.x
Abstract
The markets for special crops in western Canada are not yet mature. A farmer faces a choice of either signing a production contract with a buyer prior to planting the crop or selling the crop after harvest to a limited number of buyers. This paper examines both methods using a transaction cost approach. The evidence suggests that neither method will lead to an efficient level of investment in the production of special crops. As a result, the full potential for diversification into special crops may not have been realized in western Canada.Keywords
This publication has 12 references indexed in Scilit:
- Risk Ownership in Contract ManufacturingManufacturing & Service Operations Management, 2007
- Transaction Costs and the Benefits of Trade: Liberalizing the Japanese Importing System for BeefAsian Economic Journal, 1992
- A Bargaining Model with Incomplete Information About Time PreferencesEconometrica, 1985
- Efficient mechanisms for bilateral tradingJournal of Economic Theory, 1983
- The Contractual Nature of the FirmThe Journal of Law and Economics, 1983
- Marketing Alternatives and Resource Allocation: Case Studies of Collective BargainingAmerican Journal of Agricultural Economics, 1980
- Transaction-Cost Economics: The Governance of Contractual RelationsThe Journal of Law and Economics, 1979
- Vertical Integration, Appropriable Rents, and the Competitive Contracting ProcessThe Journal of Law and Economics, 1978
- Educational Organizations as Loosely Coupled SystemsAdministrative Science Quarterly, 1976
- The Nature of the FirmEconomica, 1937