Public information instead of vertical integration

Institutional economists have suggested vertical integration as a solution in cases of high asset specificity, frequency, and uncertainty. Although asset specificity and uncertainty are major issues in the seed market, vertical integration is not an option due to organisational factors. This study hypothesises that the public provision of information can be an alternative to vertical integration and illustrates this with the “list of recommended maize varieties” in Switzerland issued in a private-public partnership based on data generated by the public. A survey of maize growers and contractors shows that contractors and farmers in regions ideal for maize production rely strongly on these lists. For users who rely less on maize production, past experience is a more important guide for the choice of variety.