Case Studies in Research

AAEA Pre-Conference Long Beach CA, 2002

Nicholas Kalaitzandonakes Economics & Management of Agrobiotechnology Center (EMAC)

University of Missouri-Columbia

When & Why?

• When data is scant & difficult to come by– Transaction costs & factors that drive them

– Intra-firm decision making

– Inter-firm interactions

– Etc.

• When the past is not a good guide– Radical innovation

– Changing structure

– Etc.

• When interested in detail & complexity-zeroing in

Economic Theory & Case Studies

• What is the role of theoretical constructs and behavioral models in case study analysis?

• Test existing knowledge?

• Develop new knowledge?

• Frame the problem – define boundaries of analyses?

• Can case studies facilitate hypotheses testing?• Can case study research be generalized?• Qualitative or quantitative?

Number of Agchem Distribution Outlets 1980-96

0

5000

10000

15000

20000

25000

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Year

Example 1: Entry and Incumbency in AgInput Distribution System

Ho: A diffused distribution channel exerts local monopoly

power and minimizes e-commerce success

Example 2: Comparative Licensing Strategies

Market Valuation of Mycogen and Ecogen

0

200

400

600

800

1000

1200

88 89 90 91 92 93 94 95 96 97 98

$ M

illio

n

Mycogen Ecogen

Ho: Licensing Strategy consistent with real

options theory

Network of farms Processing plant

1

2

3

4Harvest delivery

ReceivingReceivingPitsPits

SortingSortingDryingDrying

BufferBufferStorageStorage

ShellingShelling

BULKBULKSTORAGESTORAGE

Sizing/CleaningSizing/Cleaning

TreatingTreatingBufferBuffer

StorageStorage

BaggingBagging

WarehouseWarehouse

DehuskingDehusking

Cost per bag

puri

tyExample 3: IP Standards & Costs in Seed Production

Ho

Some Final Questions

• How important are biases in case study research?• What are the advantages & disadvantages of case

studies as research methodology & tools?• Is case study research a substitute or complement

for secondary data and aggregate analyses?