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Genetic Information in Agricultural Productivity and Product Development

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Author Info
David A. Hennessy
John A. Miranowski
Bruce A. Babcock

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Abstract

Two prominent features of recent changes in agriculture have been the advent of precision breeding techniques and an increase in the level of information netputs in production. This article identifies ways in which these features may complement in expanding the variety of processed products, level of productivity, and rate of change in productivity. Using a martingale concept of information, we identify conditions under which information increases the incentives to invest and engage in product differentiation activities. A theory on how genetic uniformity can enhance the rate of learning through process experimentation, and so the rate of technical change, is developed. Copyright 2003 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): 86 (2004)
Issue (Month): 1 (02)
Pages: 73-87
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Handle: RePEc:bla:ajagec:v:86:y:2004:i:1:p:73-87

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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. Nelson, Richard R & Winter, Sidney G, 1982. "The Schumpeterian Tradeoff Revisited," American Economic Review, American Economic Association, vol. 72(1), pages 114-32, March.
  2. Jonathan Levin & Susan Athey, 2001. "The Value of Information in Monotone Decision Problems," Working Papers 01003, Stanford University, Department of Economics. [Downloadable!]
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  3. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law & Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  4. Hennessy, David A., 2002. "Information Asymmetry as a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
  5. Ferrier, Peyton, 2002. "Measurement Of Grading Error Costs In The Beef Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19906, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Peter Bogetoft & Henrik Ballebye Olesen, 2003. "Incentives, Information Systems, and Competition," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(1), pages 234-247, 02. [Downloadable!] (restricted)
  7. Juan Dubra & Federico Echenique, 2001. "Measurability Is Not about Information," Cowles Foundation Discussion Papers 1296, Cowles Foundation, Yale University. [Downloadable!]
  8. Allen, Beth, 1983. "Neighboring information and distributions of agents' characteristics under uncertainty," Journal of Mathematical Economics, Elsevier, vol. 12(1), pages 63-101, September. [Downloadable!] (restricted)
  9. Bonaccorsi, Andrea & Giuri, Paola, 2001. "The long-term evolution of vertically-related industries," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1053-1083, July. [Downloadable!] (restricted)
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  10. Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 271-92, Fall.
  11. Chandler, Alfred D, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer. [Downloadable!] (restricted)
  12. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September. [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. Roosen, Jutta & Hennessy, David A. & Hennessy, Thia C., 2004. "Seasonality, Capital Inflexibility, and the Industrialization of Animal Production," Staff General Research Papers 12222, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  2. Roselli, Luigi & Seccia, Antonio & Stasi, Antonio, 2006. "Atteggiamento dei consumatori nei confronti dell’evoluzione del sistema agro-alimentare: L’introduzione di alimenti geneticamente modificati
    [Consumers' attitude towards the new element of evol
    ," MPRA Paper 11776, University Library of Munich, Germany. [Downloadable!]
  3. Hennessy, David A., 2003. "Slaughterhouse Rules: Animal Uniformity and Regulating for Food Safety in Meat Packing," Staff General Research Papers 10839, Iowa State University, Department of Economics.
    Other versions:
  4. David A. Hennessy, 2004. "Product Development, Cost Seasonality, Region Marginalization, and a More Demanding Consumer," Center for Agricultural and Rural Development (CARD) Publications 04-wp378, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  5. Carriquiry, Miguel A. & Babcock, Bruce A., 2004. "Reputation, Quality Observability, and the Choice of Quality Assurance Systems," Staff General Research Papers 12038, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  6. David A. Hennessy, 2005. "Informed Control Over Inputs and Extent of Industrial Processing," Center for Agricultural and Rural Development (CARD) Publications 05-wp398, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  7. Bulut, Harun & Lawrence, John D., 2008. "Meat Slaughter and Processing Plants’ Traceability Levels: Evidence From Iowa," Staff General Research Papers 12928, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  8. Parcell, Joe & Schaefer, Daniel & Patterson, David & John, Mike & Kerley, Monty & Haden, Kent, 2008. "Assessing the Value of Coordinated Sire Genetics in a Synchronized AI Program," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37618, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management. [Downloadable!]
  9. David A. Hennessy, 2003. "Slaughterhouse Rules: Human Error, Food Safety, and Uniformity in Meat Packing," Center for Agricultural and Rural Development (CARD) Publications 03-wp346, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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