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Self-Enforcing Transactions: Reciprocal Exposure in Fisheries
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In this article, the importance of transaction-specific investments in determining contract choice in the intermediate market for raw fish was tested using information from a large sample of implicit contracts between fishers and processors in British Columbia for the 1988 fishing season.Abstract:
This article tests the importance of transaction-specific investments in determining contract choice in the intermediate market for raw fish. The analysis uses information from a large sample of (implicit) contracts between fishers and processors in British Columbia for the 1988 fishing season. These contracts are of two general types: spot-market arrangements, and ex ante agreements. With a spot contract, buyers and sellers of fish seek one another after incurring seasonal investments (e.g., vessel maintenance, crew, processing facilities, etc.); there is no prior agreement for exchange, nor is there an agreement the relationship will continue beyond the transaction.' With ex ante agreements, the parties agree to trade with one another, perhaps exclusively, prior to either party incurring seasonal start-up costs. These agreements typically have nonprice compensation mechanisms such as financing of vessels by processors, andread more
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Posted Content
Using Hostages to Support Exchange: Dependence Balancing and Partial Equity Stakes in Japanese Automotive Supply Relationships
TL;DR: In this paper, the authors examined the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships, and found evidence that Japanese auto assemblers hold equity stakes in those suppliers that would otherwise be particularly vulnerable to assembler opportunism.
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Understanding the hold-up problem in the management of megaprojects: The case of the Channel Tunnel Rail Link project
TL;DR: In this paper, the authors examined the outcome of renegotiations that happened between the UK government and private investors in the Channel Tunnel Rail Link project and developed a model to formalise the evolution of bargaining power of these two parties in the contracting period.
Journal ArticleDOI
Contracts as Organizations
Brayden G King,D. Gordon Smith +1 more
TL;DR: In this paper, the authors argue that economic theories do not adequately explain many commonly observed features of contracts, and they offer four organizational theories to supplement and in some instances, perhaps, challenge the dominant economic accounts.
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Integration and Productivity: Satellite-Tracked Evidence
TL;DR: Satellite-tracked real-time data from a large fishing firm managing its vertically, horizontally, and geographically linked ships is introduced to study the causal impact of integration on total factor productivity TFP after the firm acquired its vertically unintegrated contractual fish suppliers.
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Knitted warmth: the simple analytics of social cohesion
TL;DR: In this article, the authors derive sufficient conditions for equilibrium cooperation when agents know only the level of social cohesion, and distinguish between characteristics of individuals and those of populations, and between mechanisms that favor cooperation in low-information "mass society" and in information-rich settings.
References
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Book
The Problem of Social Cost
TL;DR: In this paper, it is argued that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable, and therefore, it is recommended to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others).
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Transaction-Cost Economics: The Governance of Contractual Relations
TL;DR: For instance, the authors argues that if transaction costs are negligible, the organization of economic activity is irrelevant, since any advantages one mode of organization appears to hold over another will simply be eliminated by costless contracting.
Journal ArticleDOI
Vertical Integration, Appropriable Rents, and the Competitive Contracting Process
TL;DR: In this paper, the potential of post-contractural apportunistic behavior for improving market efficiency through intra-firm rather than interfirm transactions is examined under the assumption that vertical costs will increase less than contracting costs as specialized assets and appropriable quasi rents increase.
Book
The Theory and Practice of Econometrics
TL;DR: The Classical Inference Approach for the General Linear Model, Statistical Decision Theory and Biased Estimation, and the Bayesian Approach to Inference are reviewed.
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