Journal of Forest Economics > Vol 25 > Issue 1

Behavioral determinants of supply chain integration and coexistence

Christian Kimmich, Swiss Federal Research Institute WSL, Switzerland, , Urs Fischbacher, University of Konstanz, Germany
Suggested Citation
Christian Kimmich and Urs Fischbacher (2016), "Behavioral determinants of supply chain integration and coexistence", Journal of Forest Economics: Vol. 25: No. 1, pp 55-77.

Publication Date: 0/12/2016
© 0 2016 Christian Kimmich, Urs Fischbacher
JEL Codes:C93D22L22L73Q23
Industrial organizationTime preferencesRisk preferencesPrice expectationsInstitutional trustPlural forms


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In this article:
Organizational structure and institutional choices in wood markets 
Behavioral hypotheses for institutional choice 
Methods and data 


Economic theory considers physical production characteristics and related property rights as key determinants of the organization of an industry. Yet, we frequently observe coexisting governance modes within industries and firms, even when the transaction attributes of a commodity are homogenous. We test whether risk and time preferences, price expectations, and trust in supply chain types can explain variations and coexistence in governance. Specifically, we experimentally elicit economic preferences of forest managers in the Swiss wood sector. We find that all behavioral dimensions are related to the choice of sales channel. Most importantly, trust and expectations are key determinants in transferring property rights, while risk aversion, patience, and ownership structure explain the existence of plural forms at the firm level.