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Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties

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Author Info
 Saak, Alexander E
Hennessy, David A

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Abstract

There exists much uncertainty about consumer attitudes toward genetically modified foods. If it happens that sufficient (insufficient) acres are planted under nonmodified seed to meet postharvest demand, then a price premium will not (will) emerge for the nonmodified varieties. A nonlinearity originates in the fact that a price premium may not be supported. This nonlinearity interacts with demand uncertainty to determine equilibrium plantings and the probability that postharvest varietal prices differ. Also, as planting approaches signals will be broadcast about the nature of postharvest demand. We show how the nonlinearity affects the types of signals that growers will prefer to receive. Copyright 2002 by American Agricultural Economics Association

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 84 (2002)
Issue (Month): 2 (May)
Pages: 308-19
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Handle: RePEc:bla:ajagec:v:84:y:2002:i:2:p:308-19

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jonathan Levin & Susan Athey, 2001. "The Value of Information in Monotone Decision Problems," Working Papers 01003, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  2. Lapan, H. & Moschini, G., 2000. "Incomplete Adoption of a Superior Innovation," Staff General Research Papers 1738, Iowa State University, Department of Economics.
    Other versions:
  3. Babcock, Bruce A., 2003. "Value of Weather Information in Market Equilibrium (The)," Staff General Research Papers 10592, Iowa State University, Department of Economics.
  4. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-80, January. [Downloadable!] (restricted)
    Other versions:
  5. Lence, Sergio H. & Hayes, Dermot J., 2001. "Response to an Asymmetric Demand for Attributes: An Application to the Market for Genetically Modified Crops," Staff General Research Papers 2021, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  6. Henry, Claude, 1974. "Investment Decisions Under Uncertainty: The "Irreversibility Effect."," American Economic Review, American Economic Association, vol. 64(6), pages 1006-12, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Saak, Alexander E., 2003. "Identity Preservation And False Non-Gmo Labeling In The Food Supply Chain," 2003 Annual meeting, July 27-30, Montreal, Canada 22182, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Alexander E. Saak, 2002. "Identity Preservation and False Labeling in the Food Supply Chain," Food and Agricultural Policy Research Institute (FAPRI) Publications 02-wp295, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  3. Saak, Alexander E., 2002. "Identity Preservation and False Labeling in the Food Supply Chain," Staff General Research Papers 2062, Iowa State University, Department of Economics. [Downloadable!]
  4. Saak, Alexander, 2003. "Spatial Production Concentration, Demand Uncertainty, and Multiple Markets," Staff General Research Papers 10679, Iowa State University, Department of Economics. [Downloadable!]
  5. Alexander E. Saak, 2003. "Location, Planting Decisions, and the Marketing of Quality-Differentiated Agricultural Commodities," Center for Agricultural and Rural Development (CARD) Publications 03-wp331, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  6. Alexander E. Saak, 2003. "Spatial Production Concentration, Demand Uncertainty, and Multiple Markets," Center for Agricultural and Rural Development (CARD) Publications 03-wp340, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  7. Alexander E. Saak, 2003. "Spatial Production Concentration, Demand Uncertainty, and Multiple Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp340, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  8. Alexander E. Saak, 2003. "Location, Planting Decisions, and the Marketing of Quality-Differentiated Agricultural Commodities," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp331, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
  9. Ganiere, Pierre & Chern, Wen S., 2004. "Consumer Acceptance Of Genetically Modified Foods: A Profile Of American Consumers," 2004 Annual meeting, August 1-4, Denver, CO 19972, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Ganiere, Pierre & Chern, Wen S. & Hahn, David, 2004. "Who Are Proponents And Opponents Of Genetically Modified Foods In The United States?," Working Papers 28315, Ohio State University, Department of Agricultural, Environmental and Development Economics. [Downloadable!]
  11. Saak, Alexander, 2003. "Location, Planting Decisions, and the Marketing of Quality-Differentiated Agricultural Commodities," Staff General Research Papers 10359, Iowa State University, Department of Economics. [Downloadable!]
  12. Alexander E. Saak, 2002. "Identity Preservation and False Labeling in the Food Supply Chain," Center for Agricultural and Rural Development (CARD) Publications 02-wp295, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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