Optimal Contracting and Vertical Coordination in the Beef Industry: An Assessment of Value-Based Pricing

This dissertation explores the nature and scope of vertical coordination in the U.S. beef industry. From the perspective of the incomplete contract theory of the industrial organization literature, this dissertation first provides a theoretical economic explanation for the traditional and emerging governance structure of the U.S. beef industry, and then explains why a complete vertical integration has not yet occurred in the beef sector. Analyzing the organizational details of this industry, the author argues that the degree of idiosyncrasy of transaction-specific investments by each of the vertically-related beef sectors is not high enough that transaction costs could be further reduced by vertical integration…

Author: Rahman, Shaikh Mahfuzur

Source: University of Maryland

Download Link: Click Here To Download This Report

Reference URL: Visit Now

Reference URL: Visit Now

Leave a Comment