Regulating Broiler Contracts: Tournaments Versus Fixed Performance Standards
Theofanis Tsoulouhas and
Tomislav Vukina
American Journal of Agricultural Economics, 2001, vol. 83, issue 4, 1062-1073
Abstract:
Grower discontent with tournaments as mechanisms for settling poultry contracts can largely be attributed to the group composition risk that tournaments impose on growers. This article focuses on the welfare effects of a widely advocated regulatory proposal to prevent integrator companies from using tournaments and replace them with schemes that compare performance to a fixed standard. The analysis shows that the mandatory replacement of tournaments with fixed performance standards, absent any rules that regulate the magnitude of the piece rate, can decrease grower income insurance without raising welfare. However, replacing tournaments with fixed performance standards can simultaneously increase income insurance and welfare, provided that the magnitude of the piece rate is also regulated. Copyright 2001, Oxford University Press.
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (34)
Downloads: (external link)
http://hdl.handle.net/10.1111/0002-9092.00230 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: REGULATING BROILER CONTRACTS: TOURNAMENTS VERSUS FIXED PERFORMANCE STANDARDS (2000) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:83:y:2001:i:4:p:1062-1073
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().