Transactions And Behavior Opportunist In Tobacco Production In Region Centro-Serra, Rio Grande Do Sul

Abstract

The paper examines elements about the opportunistic behavior of agents in tobacco industry transactions. The contractual relationship signed between the JTI Processor of Tobacco Industry in Brazil and the tobacco producers that deal with its production is analyzed. The research was carried out in the municipality of Arroio do Tigre, in the Center-Serra Region of Rio Grande do Sul, Brazil. The collection of primary data together with these agents allowed us to gather essential elements about the main transaction in the sector, related to the cultivation and tobacco production. Mixed methods were employed, combining fuzzy, quantitative analysis with the case study, qualitative. The results show that the capital transactions of the agreement are regulated by mechanisms specific to a spot market; with full non-compliance with contractual clauses established ex ante. Rigid and formal contracts are violated on a consensual basis by the contracting parties, revealing that the agreement does not have a level of enforcement capable of changing the way transactions are performed. In the midst of the existence of opportunistic behavior, the transaction is inserted in the typology as a neoclassical contract, above all by the existence of specific assets in relationship.