We applied a formal theoretical model of adaptation to two empirical settings within the agrifood
\nindustry: specialized pig production and food safety in Denmark. The objective is to allocate
\ndecision rights ex ante so that actual decisions taken ex post will optimize the profit accruing
\nto the two parties in a contractual or integrative relation.
\nTwo applications have been presented in this paper: First an actual partnership between two
\npork producers in Denmark. Based on detailed budgets we develop detailed schedules for the
\n\u201creneging temptations\u201d of the two partners- These are the temptations to renege on the contract
\nduring the evolution of the partnership. Using a model developed by Baker, Gibbons and Murphy
\n(2006) we calculate equilibria using the Folk theorem in order to determine which is the
\nbest allocation of decision rights. We find that the existing allocation of decision rights in the
\ncase we examine is efficient in the sense that it results into a second best allocation.
\nUsing the same modelling approach we presented a second application on salmonella control
\nrelated to end-feeding, that is, salmonella contamination of pork due to filled bellies of pigs fed
\nfor the last 12 hours before delivery. Based on appropriate assumptions, the parties should give
\nthe decision right (whether to end-feed or not) to the slaughterhouse in order to reach the firstbest
\nsolution which, given the assumptions, is feasible<\/p>\n","protected":false},"excerpt":{"rendered":"
We applied a formal theoretical model of adaptation to two empirical settings within the agrifood industry: specialized pig production and food safety in Denmark. The objective is to allocate decision rights ex ante so that actual decisions taken ex post will optimize the profit accruing to the two parties in a contractual or integrative relation. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5361,7054,8882,13816,3845,7055,2055,286,6904,46,108,3035,20007,13370,1675,10858,10859,24321,15459,14,1635,25838,33,16262,1324,17152,17743,27282,14790,396,2016,76,20911,7056,6053],"class_list":["post-4928","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adaptation","tag-adaptation-theory","tag-al","tag-ass","tag-contracts","tag-decision-rights","tag-denmark","tag-dust","tag-fee","tag-feed","tag-feeding","tag-food-safety","tag-gh","tag-ken","tag-location","tag-mark","tag-nat","tag-partners","tag-ped","tag-pig","tag-pig-production","tag-pigproduction-gay","tag-pigs","tag-pl","tag-pork","tag-pork-producers","tag-prod","tag-production","tag-rene","tag-safety","tag-salmonella","tag-slaughter","tag-t","tag-theory-of-the-firm","tag-use"],"_links":{"self":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/comments?post=4928"}],"version-history":[{"count":0,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4928\/revisions"}],"wp:attachment":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/media?parent=4928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/categories?post=4928"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/tags?post=4928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}