Information, incentives and institutions in the agri-food sector

This paper examines the factors driving changes in the agri-food sector with respect to food safety, quality assurances, technological change and the environment. External shocks change the nature, size and distribution of transaction costs, leading to institutional adaptation. Asymmetric and incomplete information provides the underlying theme of the paper, which draws on transaction cost economics to provide insights into the role of incentive mechanisms and institutions for the delivery of credible quality signals to consumers.