contractual arrangements and power asymmetry in pork chain in western Paraná

Abstract

In this article, it aims discuss the factors involved in the adoption of the contractual arrangements for the supply of raw materials, by the segment producers and processors in pork chain, in the Paraná state. The theoretical approach involved the insertion of Industrial Organizations and Cost Economics Measurement theories by Williamson’s (2005) contractual schema, discussed in Transaction Cost Economics theory. Supported on qualitative assumptions, the study has identified that the arrangement choice (contracts) is justified by the specificity in transaction involved, as well perception of high levels, considering the power asymmetry in the relation. Product and process attributes measurement represented just an efficient way to govern transaction, especially for processor, warranting it property rights, but not contributing to achieve contractual equilibrium, mainly for producers.