Veblen’s Institutional Approach and Agribusiness Coordination

Abstract

The paper aims to investigate Thorstein Veblen"s evolutionary framework to the analysis of agribusiness systems. Veblen"s theory argues that institutions are as much the result of individual choices as act over choices through the enforcement of mental habits. So there is a recursive relationship between individuals and institutions. Veblen"s stressed out contributions: (i) a broad concept of institution, and (ii) institutional recursive relationships, both are of great value for the investigation of agribusiness systems. The article provides an assessment of Monsanto"s role in the Brazilian market of genetically modified seeds (GM). In accordance with the performed assessment Monsanto may be considered as an institution in that market, because its performance enforces and establishes routines and habits among market players, like the examples of the scheme to collection of royalties fees at soybean trading facilities, and the role of Monsanto in the enactment of the Brazilian GMO property rights regime.