We consider a processed-food manufacturer that faces uncertain exogenous demand and procures a farm crop either from the outside market or from local farmers via contract farming. The contract price is determined at the beginning of the season when the market price is still uncertain. When the market price is realised, we allow the farmer the possibility of reneging from the contract, which occurs if the market price is sufficiently high. We show that granting farmers the option of reneging on the contract may improve the manufacturer's expected profit, and identify the conditions under which such an improvement can be expected. © 2012.
Huh, W., Athanasoglou, S., & Lall, U. (2012). Contract farming with possible reneging in a developing country: Can it work?. IIMB MANAGEMENT REVIEW, 24(4), 187-202 [10.1016/j.iimb.2012.06.003].
Citazione: | Huh, W., Athanasoglou, S., & Lall, U. (2012). Contract farming with possible reneging in a developing country: Can it work?. IIMB MANAGEMENT REVIEW, 24(4), 187-202 [10.1016/j.iimb.2012.06.003]. | |
Tipo: | Articolo in rivista - Articolo scientifico | |
Carattere della pubblicazione: | Scientifica | |
Presenza di un coautore afferente ad Istituzioni straniere: | Si | |
Titolo: | Contract farming with possible reneging in a developing country: Can it work? | |
Autori: | Huh, W; Athanasoglou, S; Lall, U | |
Autori: | ||
Data di pubblicazione: | 2012 | |
Lingua: | English | |
Rivista: | IIMB MANAGEMENT REVIEW | |
Digital Object Identifier (DOI): | http://dx.doi.org/10.1016/j.iimb.2012.06.003 | |
Appare nelle tipologie: | 01 - Articolo su rivista |