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Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Miguel Carriquiry
Bruce A. Babcock
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Many food traits desired by consumers are costly to provide and difficult to verify. A complicating factor is that delivered quality can only be affected stochastically by producers and imperfectly observed by consumers. Markets for these goods will emerge only if supplying firms can be trusted. We develop a repeated purchases model to explore how quality discoverability, market structure, nature of reputations, market premiums, and discount factors drive firm choice about the stringency of quality assurance systems designed to gain consumer trust. Reputation protection is key incentive for firms to invest in high-quality goods and quality assurance systems. Copyright 2007 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): 89 (2007)
Issue (Month): 1 (02)
Pages: 12-23
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Handle: RePEc:bla:ajagec:v:89:y:2007:i:1:p:12-23Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0002-9092
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Paper Miguel Carriquiry & Bruce A. Babcock, 2004.
"Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry ,"
Center for Agricultural and Rural Development (CARD) Publications
04-wp377, Center for Agricultural and Rural Development (CARD) at Iowa State University.
[Downloadable!] Carriquiry, Miguel A. & Babcock, Bruce A., 2005.
"Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry ,"
2005 Annual meeting, July 24-27, Providence, RI
19549, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!] Carriquiry, Miguel A. & Babcock, Bruce A., 2004.
"Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry ,"
Staff General Research Papers
12215, Iowa State University, Department of Economics.
[Downloadable!] 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.: Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985.
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Other versions:
Hennessy, David A. & Roosen, Jutta & Jensen, Helen H., 2002.
"Systemic Failure in the Provision of Safe Food ,"
Staff General Research Papers
2091, Iowa State University, Department of Economics.
Hennessy, David A. & Roosen, Jutta & Jensen, Helen H., 2003.
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Klein, Benjamin & Leffler, Keith B, 1981.
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Fearne, Andrew & Hornibrook, Susan & Dedman, Sandra, 2001.
"The Management Of Perceived Risk In The Food Supply Chain: A Comparative Study Of Retailer-Led Beef Quality Assurance Schemes In Germany And Italy ,"
International Food and Agribusiness Management Review ,
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Laurian J. Unnevehr & Helen H. Jensen, 1996.
"HACCP as a Regulatory Innovation to Improve Food Safety in the Meat Industry ,"
Center for Agricultural and Rural Development (CARD) Publications
96-wp152, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Other versions: Hennessy, David A & Roosen, Jutta & Miranowski, John A, 2001.
" Leadership and the Provision of Safe Food ,"
American Journal of Agricultural Economics ,
American Agricultural Economics Association, vol. 83(4), pages 862-74, November.
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Other versions: Darby, Michael R & Karni, Edi, 1973.
"Free Competition and the Optimal Amount of Fraud ,"
Journal of Law & Economics ,
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Mason, Charles F & Sterbenz, Frederic P, 1994.
"Imperfect Product Testing and Market Size ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 61-86, February.
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Noelke, Corinna M. & Caswell, Julie A., 2000.
"A Model Of The Implementation Of Quality Management Systems For Credence Attributes ,"
2000 Annual meeting, July 30-August 2, Tampa, FL
21874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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Rafael Rob & Tadashi Sekiguchi, 2001.
"Product Quality, Reputation and Turnover ,"
Penn CARESS Working Papers
95ec48d1c0f2065e1d4aaeb99, Penn Economics Department.
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Reardon, Thomas & Farina, Elizabeth, 2001.
"The Rise Of Private Food Quality And Safety Standards: Illustrations From Brazil ,"
International Food and Agribusiness Management Review ,
International Food and Agribusiness Management Association (IAMA), vol. 4(04).
[Downloadable!]
Full
references 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.)
Rouviere, Elodie & Soubeyran, Raphael, 2008.
"Collective Reputation, Entry and Minimum Safety Standard ,"
2008 International Congress, August 26-29, 2008, Ghent, Belgium
44465, European Association of Agricultural Economists.
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Marette, Stéphan, 2007.
"Minimum Safety Standard, Consumers’ Information, and Competition (The) ,"
Staff General Research Papers
12718, Iowa State University, Department of Economics.
[Downloadable!]
Other versions:
Stephan Marette, 2007.
"Minimum Safety Standard, Consumers' Information, and Competition, The ,"
Center for Agricultural and Rural Development (CARD) Publications
07-wp441, Center for Agricultural and Rural Development (CARD) at Iowa State University.
[Downloadable!] Stephan Marette, 2007.
"Minimum Safety Standard, Consumers' Information, and Competition, The ,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
07-wp441, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
[Downloadable!]
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