Incentive Instruments in Fruit and Vegetable Contracts: Input Control, Monitoring, Measuring, and Price Risk

摘要: This article examines the structure of contractual relations between growers and first handlers in California fruit vegetable markets. Evidence on existing structures is collected from on-site interviews a small mail survey market intermediaries who contract with independent growers. Four generic instruments are identified—input control, field visits, quality measurement, residual price risk—which used to coordinate which help alleviate information asymmetries align incentives contracting parties. Drawing our survey, we offer examples how each these employed.