Vertical coordination is a more comprehensive concept than vertical integration, capturing market, contractual, and ownership coordination. Williamson suggests that transaction costs motivate the use of nonmarket arrangements to vertically coordinate production. This paper presents a vertical coordination index incorporating industry input‐output relationships and nonmarket arrangements. In an econometric analysis, the vertical coordination index is utilized to examine transaction cost effects on food industry vertical linkages. Empirical results support the hypothesis that transaction costs are a primary motivation to vertically coordinate via nonmarket arrangements. Results also suggest the vertical coordination index is more robust than traditional vertical integration measure.

Aims Oral itraconazole has variable pharmacokinetics and risks of adverse events associated with high plasma exposure. An inhalation formulation of itraconazole (PUR1900) is being developed to treat allergic bronchopulmonary aspergillosis, an allergic inflammatory disease occurring in asthmatics and patients with cystic fibrosis. Methods A 3‐part, open‐label Phase 1 study was conducted to evaluate safety, tolerability and pharmacokinetics of PUR1900. Healthy volunteers (n = 5–6/cohort) received either single (Part 1) or multiple (Part 2) ascending doses of PUR1900 for up to 14 days. In Part 3 stable, adult asthmatics received a single dose of 20 mg PUR1900 or 200 mg of oral Sporanox (itraconazole oral solution) in a 2‐period randomized cross‐over design. Itraconazole plasma and sputum concentrations were evaluated. Results None of the adverse events considered as at least possibly related to study treatment were moderate or severe, and none were classed as serious. The most common was the infrequent occurrence of mild cough. Itraconazole plasma exposure increased with increasing doses of PUR1900. After 14 days, PUR1900 resulted in plasma exposure (area under the concentration–time curve up to 24 h) 106‐ to 400‐fold lower across doses tested (10–35 mg) than steady‐state exposure reported for oral Sporanox 200 mg. In asthmatics, PUR1900 geometric mean maximum sputum concentrations were 70‐fold higher and geometric mean plasma concentrations were 66‐fold lower than with oral Sporanox. Conclusion PUR1900 was safe and well‐tolerated under the study conditions. Compared to oral dosing, PUR1900 achieved higher lung and lower plasma exposure. The pharmacokinetic profile of PUR1900 suggests the potential to improve upon the efficacy and safety profile observed with oral itraconazole.

Daily average prices for hogs sold through the Hog Accelerated Marketing System (HAMS), an experimental electronic market, were compared to those for similar grade hogs sold through Peoria terminal and Indiana direct markets. Results indicate that prices received by farmers using HAMS increased by $0.94 to $0.99 per 100pounds relative to their previous alternative. Using frequency of price change and average amount of price change as measures of efficient pricing behavior, the electronic market exhibited more efficient behavior than the traditional markets, i.e., average prices changed from one day to the next more frequently and by smaller amounts.

Electronic marketing has evolved in agricultural marketing thought over the past 20-25 years, with a distinct acceleration since the late 1970's. The first evidence of an electronic market, called "Selevision," for Florida citrus fruit was found in the mid 1940's (Cassidy). However, it was not until a teletype auction was developed for butcher hogs in Ontario during the early 1960's (Peer) that electronic marketing gained much interest. After the development of a few successful telephone auctions (teleauctions) for livestock, principally pigs, and an unsuccessful teleauction for eggs in the U.S. during the 1960's, the concept was advanced when Schrader, Heifner and Larzelere proposed a computerized egg exchange in 1968 (Schrader et al.). Academic interest increased followed the publication of a conceptual assessment of electronic markets as part of the "Marketing Alternatives for Agriculture" series from the National Public Policy Education Committee in 1976 (Henderson et al., 1976). Attention became more focused in 1978 when USDA's Agricultural Marketing Service announced an initiative to partially finance pilot electronic marketing projects. My purposes are to (1) define the concept of electronic marketing as it 'applies to agriculture, (2) describe applications of electronic marketing in agriculture, and (3) review some of the reasons for increased interest. These reasons, in turn, imply some performance expectations. The subsequent papers by Schrader and Sporleder bring r ..