aggregate statistics. We next examine vertical coordination as part of the industrialization process and highlight contracting … number of farms at a relatively rapid rate, in spite of the stability in the number of farms. Although contracting clearly …

lower welfare for some, and perhaps all, contracting parties. We consider a situation where processors can obtain inputs … depends on the volume of trade in the spot market. We show that contracting parties may lose when more contracting results in …. However, contracting raises spot-market transaction costs for those who do not sign contracts, which provides a greater …