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Quality assurance mechanisms in agrifood: The case of the Spanish fresh meat sector
González-Díaz, Manuel; Fernández-Barcala, Marta; Arruñada, Benito
Universitat Pompeu Fabra. Departament d'Economia i Empresa
The largest fresh meat brand names in Spain are analyzed here to studyhow quality is signaled in agribusiness and how the underlying quality-assurance organizations work. Results show, first, that organizationalform varies according to the specialization of the brand name.Publicly-controlled brand names are grounded on market contracting withindividual producers, providing stronger incentives. In contrast,private brands rely more on hierarchy, taking advantage of itssuperiority in solving specific coordination problems. Second, theseemingly redundant coexistence of several quality indicators for agiven product is explained in efficiency terms. Multiple brands areshown to be complementary, given their specialization in guaranteeingdifferent attributes of the product.
Business Economics and Industrial Organization
quality assurance
vertical integration
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