 Avoiding Double Marginalisation in Agro-Food ChainsEric Giraud-Héraud (), Louis-Georges Soler and Herve Tanguy European Review of Agricultural Economics, 1999, vol. 26, issue 2, 179-98 Abstract: This paper proposes a model for vertical relationships in several agribusiness sectors for which differences in terms of quality exist in the end-market. Intermediaries justify their position on the grounds of their exclusive access to a market segment (high quality), whereas producers retain the right to supply the low-quality market directly. Our model takes into account the diversity of consumers' tastes, and a possible extra marketing cost for direct access to the market by the producer. We demonstrate that when the producer can commit in advance to supplying the available capacity in full, then in certain conditions the efficiency of a vertically integrated sector can be restored (level of production and allocation to qualitative segments). Copyright 1999 by Oxford University Press. Date: 1999 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:26:y:1999:i:2:p:179-98 Ordering information: This journal article can be ordered from Access Statistics for this article European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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