Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

This study sought to discuss the governance structures adopted between livestock producers and their cooperative slaughterhouses in the chain of differentiated beef in the state of Paraná. The theoretical basis used was the Transaction Cost Economics and Measurement Costs Economics, complemented by the specificities of cooperatives. We conducted interviews with three key agents and eleven representatives of six cooperative slaughterhouses operating in this system. As result, we observed that the cooperatives have similar objectives and requirements, although there are differences in the levels of formality or flexibility. Although transactions are recurrent and have been successful, they involve a high asset specificity, depend on subjective measurements, and are still exposed to market uncertainties, which leaves room for the generation of conflicts and disincentives to quality. Despite this, the relational and reputational aspects associated with trust and partnership between the parties are elements that enable reduced transaction and measurement costs in these structures. At first, the measurements conducted by the cooperatives had an important role in the construction of trust between the parties and for value distribution. In a second moment, the trust built enabled the reduction of measurement costs.

Transaction Costs in Planning Literature: A Systematic Review

“Transaction costs,” as a well-established theory in New Institutional Economics, has been used to explain and analyze various planning matters for about 30 years since its introduction to planning literature. However, there is no study on how planning-related studies have utilized the theory. This paper conducts a systematic review that aims to develop a better understanding of how transaction-cost theory is used in planning literature. The review shows that while potential contributions and implications of transaction costs have been conceptually discussed in planning literature, the empirical studies have remained limited, particularly concerning the magnitude of such costs in planning systems.

Self-Expansion or Internalization as the Two Processes of Vertical Integration: What Informs the Decision?

In vertical integration literature, the two processes leading to vertical integration, namely, (1) self-expansion of the scope of activities based on internal capabilities and (2) internalization of activities with external capabilities have not been distinguished. However, using internal capabilities or incorporating external capabilities is an alternative decision for managers and distinguishing them is crucial in practice. The purpose of this study is to distinguish self-expansion separated from internalization and to explain systematically when they likely occur. This study develops a unique vertical integration model by integrating transaction cost economics and the capability approach. With the model, we systematically analyzed the occurrence of (1) self-expansion and (2) internalization. Results reveal that the firm prefers self-expansion to internalization if it is easy to build the capabilities internally or difficult to procure them from outside the firm and if the costs of acquiring a firm or business with the required capabilities or the governance costs of the activities with external capabilities are high and vice versa. Our model leads to more understanding of vertical integration.

The 2020s political economy of machine translation

This article specifies and explores the hypothesis that the diversity of human languages, right now a barrier to “interoperability” in communication and trade, will become significantly less of a barrier as machine translation technologies are deployed over the next several years. We argue that machine translation will become the 2020's analogy for ideas, to what container shipping did for goods trade in the second half of the twentieth century. But as with container shipping or railroads in the nineteenth century, this new boundary-cost and transaction-cost reducing technology does not reduce all boundary and transaction costs equally, and so creates new challenges for the distribution of ideas and thus for innovation and economic growth. How we develop, license, commercialize, and deploy machine translation will be a critical determinant of its impact on trade, political coalitions, diversity of thought and culture, and the distribution of wealth.