Book contents
- Contracting in Japan
- Cambridge Studies in Economics, Choice, and Society
- Contracting in Japan
- Copyright page
- Dedication
- Contents
- Acknowledgments
- 1 Introduction
- 2 Contracting for Terroir in Sake
- 3 Contracting for Quality in Fish
- 4 Contracting for Geothermal in Hot Springs
- 5 Contracting for Credit in Agriculture
- 6 Contracting for Mercy in Buddhism
- 7 Conclusions
- Bibliography
- Index
4 - Contracting for Geothermal in Hot Springs
Published online by Cambridge University Press: 10 August 2023
- Contracting in Japan
- Cambridge Studies in Economics, Choice, and Society
- Contracting in Japan
- Copyright page
- Dedication
- Contents
- Acknowledgments
- 1 Introduction
- 2 Contracting for Terroir in Sake
- 3 Contracting for Quality in Fish
- 4 Contracting for Geothermal in Hot Springs
- 5 Contracting for Credit in Agriculture
- 6 Contracting for Mercy in Buddhism
- 7 Conclusions
- Bibliography
- Index
Summary
Given the returns to modern equipment, many fishermen face economies of scale they cannot afford. To survive, some entrepreneurial fishermen are moving deliberately up-scale. Rather than sell on the mass-market, they create and service a niche market for premium, high-quality fish. To compete in this market, the entrepreneurial fishermen purposely raise the stakes: on internet sales sites, they post their broader reputations as a bond. In doing so, they increase their vulnerability to a dissatisfied customer. In effect, the fisherman creates among his customers a network of overlapping ties that together constitute closed social capital. In the process, he builds a network that lets him more credibly promise high quality – precisely because his buyers can contact each other, learn how he has behaved in the past, and punish him if he reneges.
- Type
- Chapter
- Information
- Contracting in JapanThe Bargains People Make When Information is Costly, Commitment is Hard, Friendships are Unstable, and Suing is Not Worth It, pp. 91 - 115Publisher: Cambridge University PressPrint publication year: 2023