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- W2149446043 abstract "The produce industry collectively solves an extremely complicated resource allocation problem in which risk-averse farmers grow a product whose market price is often quite unpre- dictable. Shippers or other intermediaries shield the farmer from much of this risk, permitting fairly ecient production. However, actual contracts between growers and shippers vary consid- erably across commodities in the residual price risk growers face. We hypothesize that imperfect quality measurement results in a moral hazard problem, and that idiosyncratic variation in the price of the produce provides additional information regarding quality. As a consequence, an ef- cient contract does not shield growers from all price risk. We examine this hypothesis for the case of fresh-market and processing tomatoes, and conclude that unobserved quality is capable of explaining observed variation in the price risk tomato growers face." @default.
- W2149446043 created "2016-06-24" @default.
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- W2149446043 date "1998-01-01" @default.
- W2149446043 modified "2023-09-25" @default.
- W2149446043 title "QUALITY MEASUREMENT AND RISK-SHARING IN CONTRACTS FOR CALIFORNIA FRUITS AND VEGETABLES" @default.
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- W2149446043 doi "https://doi.org/10.22004/ag.econ.20957" @default.
- W2149446043 hasPublicationYear "1998" @default.
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