Leilões como estrutura de governança mais eficiente que o Mercado spot: o caso das feiras de animais no interior de Alagoas

Abstract

This paper aims to present the most efficient governance structure for the cattle fairs that take place in the interior of Alagoas, by comparing the current market with the auction, questioning the viability of the spot market for the trade of animals, in order to try to answer why the animals involved in the auctions that take place in the state capital of Alagoas are genetically and phenotypically more developed, their main objective is to find market inefficiency based on transaction costs and the existence of asset specificities. The work also presented a robust characterization of the studied object of extreme importance, since it is the first time in the economic field, that the academy is concerned about the subject. The methodology consists of an on-site visit with acquisition of primary and secondary data, in the search to find specificities in the bovine asset, as well as differences in the bargaining Power among the agents of the fair that would not make the market the best allocator for this system. The results showed that the main diagnosed specificities, through descriptive statistics and hypothesis tests of data obtained from interviews, were the carcass yield; the breed and the purpose of purchase, where in the tests price differences were found or as in the case of the arroba (unit of weight corresponding to 33 pounds) values very much less than would be expected for assets of zero degree specificity indicating the presence of such specificities. As a result, the market has been modeled on the fair that has shown, the limitations of the system as it is conceived in view of the specificities of the assets, where bargaining power becomes the dominant unbalance in the fair system, with higher costs for the seller, which limits the development of animals at the fair. What makes the auction, with its non-cooperative game, and ability to offer the monopoly price to the seller, the structure more efficient.