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1、Chain Governance and Institutions in AgribusinessDr. Xiaoyong Zhang, LEI, Wageningen UR Xiaoyong.zhangwur.nlTable of Content?Institutions ?Contracts?Chain Governance?Governance Structure in Agri-food Supply ChainZhang and Aramyan, 2009Nobel Price Laureates in Institutional Economics?Douglass North (
2、1993:Institutions are ?the Humanly devised constraints that structure policy, economic and social interaction.?Elinor Ostrom (2009: ?For her analysis of economic governance, especially the commons?.?Oliver Williamson (2009: ?For his analysis of economic governance, especially the boundaries of the f
3、irm?. Williamson: The New Institutional EconomicsLevelLevelLevelLevelFrequencyFrequencyFrequencyFrequency (years(years(years(yearsCore elementsCore elementsCore elementsCore elementsPurposePurposePurposePurposeLevel 1Level 1Level 1Level 1 Social theorySocial theorySocial theorySocial theory100 to 10
4、00100 to 1000100 to 1000100 to 1000Embeddedness: informal Embeddedness: informal Embeddedness: informal Embeddedness: informal institutions, customs, traditions, institutions, customs, traditions, institutions, customs, traditions, institutions, customs, traditions, norms, religionnorms, religionnor
5、ms, religionnorms, religionOften nonOften nonOften nonOften non- - - -calculative, calculative, calculative, calculative, spontaneousspontaneousspontaneousspontaneousLevel 2Level 2Level 2Level 2 Economics of Economics of Economics of Economics of Property Property Property Property rights/political
6、theoryrights/political theoryrights/political theoryrights/political theory10101010- - - -100100100100Institutional Environment: formal Institutional Environment: formal Institutional Environment: formal Institutional Environment: formal rules of the game esp. property rules of the game esp. propert
7、y rules of the game esp. property rules of the game esp. property (polity, judiciary, bureaucracy(polity, judiciary, bureaucracy(polity, judiciary, bureaucracy(polity, judiciary, bureaucracyGet the Institutional Get the Institutional Get the Institutional Get the Institutional environment right: 1en
8、vironment right: 1environment right: 1environment right: 1stst stst order economizingorder economizingorder economizingorder economizingLevel 3 transaction Level 3 transaction Level 3 transaction Level 3 transaction cost economicscost economicscost economicscost economics1 1 1 1- - - -10101010Govern
9、ance: play of the game esp. Governance: play of the game esp. Governance: play of the game esp. Governance: play of the game esp. contract (aligning governance contract (aligning governance contract (aligning governance contract (aligning governance structures with transactionsstructures with transa
10、ctionsstructures with transactionsstructures with transactionsGet the governance Get the governance Get the governance Get the governance structure right. 2structure right. 2structure right. 2structure right. 2ndndndndorder order order order economizingeconomizingeconomizingeconomizingLevel 4Level 4
11、Level 4Level 4 NeoNeoNeoNeo- - - -classical classical classical classical economics/agency economics/agency economics/agency economics/agency theorytheorytheorytheorycontinuouscontinuouscontinuouscontinuousResource allocation and Resource allocation and Resource allocation and Resource allocation an
12、d employment (prices and quantities, employment (prices and quantities, employment (prices and quantities, employment (prices and quantities, incentive alignmentincentive alignmentincentive alignmentincentive alignmentGet the marginal Get the marginal Get the marginal Get the marginal conditionals r
13、ight. 3conditionals right. 3conditionals right. 3conditionals right. 3rdrdrdrd order economizing.order economizing.order economizing.order economizing.Relationship: NIE, TCE and Chain Governance?NIE deals with the institutional environment as well as institutional governance?TCE operates at the leve
14、l of institutions of governance (getting the governance structures- markets, hybrids, firms, bureaus- right. Contracts (Macneil, 1978?Classical contract (legal rules, formal documents?Neoclassical contract (flexibility, longer term ?Relational contract (shared values, norms, trust, etcThe Spectrum o
15、f ContractsOnly Once and One seasonFor a long timeClassical Contract NeoClassical Contract NeoClassical Contract NeoClassical Contract Neo- - - -classical contract Relational contractclassical contract Relational contractclassical contract Relational contractclassical contract Relational contractSla
16、ngen, et al, 2008Slangen, et al, 2008Slangen, et al, 2008Slangen, et al, 2008The Spectrum of ContractsClassical ContractClassical ContractClassical ContractClassical ContractNewNewNewNew- - - -classical classical classical classical ContractsContractsContractsContractsRelational ContractsRelational ContractsRelational ContractsRelational Contracts-Term of contract is shortTerm of contract is shortTerm of con
