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ESSAYS

Vol. 31 No. 2 (2004)

Organizational Divergence in the Meat Industry: A Comparative Analysis of the United States and Chile.

DOI
https://doi.org/10.7764/rcia.v31i2.284
Submitted
June 1, 2021
Published
2004-08-31

Abstract

This study compares the beef, pork and poultry sectors of the United States and Chile to identify similarities and differences in patterns of industrial organization (concentration and mechanisms of vertical integration). The principal determinants of organizational structures are discussed. The similarities found in the sectors of both countries can be explained in terms of market imperfections, production technology, transaction costs and principal-agent theory. Nevertheless, important differences exist between the two countries, especially with respect to mechanisms of vertical control. To explain these differences it is necessary to consider the peculiarities of each country’s economic and institutional environments, factors that to date have been infrequently examined in the literature relevant to the sectors.