Summary: Supply Chain Networks
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1 New institutional Economics and transparency in Supply chain networks
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1.1 Transaction Costs
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All sacrifices and disadvantages that the exchange partners have to bear in order to realise the exchange of goods and services
Transaction costs -
Types of transaction cost
- Initiation cost
- agreement cost
- processing cost
- control cost
- adjustment cost
- Initiation cost
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New forms of crop livestok integration:
- On-farm integration
- beyond the farm level
- On-farm integration
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1.1.2 characteristics of the institutional arrangement
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Relational contractual relationships
Hierarchy -
Combination of market and hierarchichal elements
Hybrid -
Characteristics of the institutional arangements:
- Incentive intensity
- extent of administrative controls
- adaptation
- costs of establishing and using the institutional arrangement
- Incentive intensity
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To what extent are the individuals motivated to reduce cost and adapt to changed framework conditions?
Incentive intensity -
To what extent can formal restrictions on individual behaviour be used to avoid transaction costs?
Extent of administrative controls -
To what extent can the transaction partners react to environmental changes independently of one another?
Autonomous adaptation -
To what extent can the transaction partners adapt to environmental changes in a coordinated manner?
Cooperative adaptation
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