Ten rules of thumb in contract design: lessons from Danish agriculture

Holding All the Cards? Quality Management by Cooperatives in a Moroccan Dairy Value Chain

“…Quality assessment and payment are playing an increasingly important role in the relation between farmers and agro-industries (Bogetoft and Olesen, 2002;. The agro-industries' aim to improve quality is resulting in increasingly 'buyer driven' value chains, in which agro-industries play a leading role in defining and enforcing the complex quality standards that govern their relation with farmers (Ponte and Gibbon, 2005).…”

Inter-organizational information exchange, supply chain compliance and performance

“…In recent decades, the economic theory of contracts has developed rapidly. It has received contributions from several areas, of which TCE and agency theory are the most important (Bogetoft and Olesen, 2004). In TCE, a contract between a buyer and a supplier means specific transactions, agreements and promises, and the terms of the exchange are defined by price, asset specificity and safeguards, on the assumption that quantity, quality and duration are all specified (Williamson, 1996).…”

“…Transaction costs lead to incomplete contracts that do not specify all possible contingencies. There are four types of direct transaction costs involving a contract (Bogetoft and Olesen, 2004). The first is the difficulty of foreseeing the possible contingencies in a complex world, i.e.…”

“…Fourth, a common criticism of TCE is that it is so broad and 'loose' that it explains 'everything' . In effect, it explains nothing because the predictive power of the theory is too weak (Bogetoft and Olesen, 2004). Fifth, TCE generally overlooks the implications of the affective elements and other features of trust (Barney and Hesterly, 1999;Claro, 2004).…”

“…Boger (2001b) summarized the major results of empirical studies on transaction costs and contractual governance in the agri-food sector. Bogetoft and Olesen (2004) pointed out that TSI, together with uncertainty and asymmetric information, are those variables necessitating contractual safeguard, according to TCE and agency theory. The recent relevant studies in the Chinese context include Lu et al (2007), Zhou et al (2008), and Han et al (2009).…”