Hold-up and the implementation of âCode of Practiceâ by agri-food cooperatives

Kostas Karantininis; Torben Vestergaard Nielsen

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Hold-up and the implementation of âCode of Practiceâ by agri-food cooperatives

In: Dynamics in chains and networks

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Kostas Karantininis

Kostas Karantininis KVL, Denmark

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Torben Vestergaard Nielsen

Torben Vestergaard Nielsen KVL, Denmark

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Type:: Chapter

Pages:: 227â237

DOI:: https://doi.org/10.3920/9789086865260_028

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We examine two cases where two large Danish agri-food cooperatives implement âcodes of practiceâ. Specifically: Code of Practice by Danish Crown and ArlagÃ¥rden by Arla foods. We employ a multi-stage model of Hold-Up with co-specific investments. We derive the theoretical implications and draw conclusions concerning the two cases. The co-operative solution to farmers hold-up concerns enlarges the numerical size of the commitment transferable in a co-operatively influenced transaction possibility for greater bilateral dependency through the promotion of larger relation-specific investments. Furthermore the vertical integration in a co-operative provides an opportunity to enlarge the credibility of a quality level signalled through private certification.

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Dynamics in chains and networks

E-Book ISBN:: 9789086865260

Publisher:: Wageningen Academic

Print Publication Date:: 10 Oct 2004

Subjects
- Life Sciences

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Hold-up and the implementation of âCode of Practiceâ by agri-food cooperatives

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Dynamics in chains and networks

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Hold-up and the implementation of âCode of Practiceâ by agri-food cooperatives