An Adaptive Structuration Theory Approach to Price Transmission in the Rice Value Chain

Abstract

Most of the quantitative studies on price transmission of agricultural products deal with estimating and testing elasticity as well as detecting the presence of asymmetries in the transmission mechanism. It has been argued that the imbalance on price transmission lies in bargaining and market competition among actors. However, previous studies about the process of actors’ social interaction are partially addressed. The role of actors’ behaviour and the process of social interaction that is constructed and reproduced are regarded as important parts of price transmission. Adaptive structuration theory (AST) is proposed as a research framework, based on actors, structures and agencies taking place through social interaction. The framework for price transmission is built from the extensive structuration matrix which shows the constructs of the structuration theory and their interactions. As a result, nine propositions of structuration are formulated.