publication . Article . 2000

Rent Sharing in Multi-Site Hog Production

Brian P. Cozzarin; Randall E. Westgren;
Restricted
  • Published: 01 Jan 2000 Journal: American Journal of Agricultural Economics, volume 82, pages 25-37 (issn: 0002-9092, eissn: 1467-8276, Copyright policy)
  • Publisher: Wiley
Abstract
A firm-level model of three-site hog production is used compare a franchise organizational structure to a three-firm alliance. The results of the simulations imply that the franchise system is better equipped to mitigate underproduction in the nursery and finishing units, the nursery and finishing units lose relatively more profit than they otherwise would in an alliance. The pig-space guatantee does little to offset the financial risk for the nursery and finishing units when underproduction occurs upstream (breeding, gestation, and farrowing unit). Copyright 2000, Oxford University Press.
Subjects
free text keywords: Agricultural and Biological Sciences (miscellaneous), Economics and Econometrics, Vertical integration, Industrial organization, Economics, Organizational structure, Alliance, Animal production, Profitability index, Financial risk, Franchise
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publication . Article . 2000

Rent Sharing in Multi-Site Hog Production

Brian P. Cozzarin; Randall E. Westgren;