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Fungicide resistance and misinformation: A game theoretic approach

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  • Chelsea A. Pardini
  • Ana Espínola‐Arredondo

Abstract

Fungicide resistance is a serious problem for agriculture today. This analysis provides additional insight into the strategic behavior of farmers when their fungicide use generates a negative intertemporal production externality in the form of fungicide resistance. We find that when farmers encounter this type of externality, they choose fungicide levels that exacerbate fungicide resistance. We examine a compensation mechanism in which a farmer reduces fungicide use in exchange for a transfer. This mechanism reduces fungicide use; however, misinformation about the severity of fungicide resistance generates distortions. We find that one‐sided misinformation could lead a farmer to choose socially optimal fungicide levels, which makes the compensation mechanism less necessary. In addition, we show that when both farmers are misinformed, the mechanism could lead farmers to choose fungicide levels below the socially optimal level depending on their pessimistic beliefs about the severity of fungicide resistance. La résistance aux fongicides est aujourd'hui un grave problème pour l'agriculture. Cette analyse fournit un aperçu supplémentaire du comportement stratégique des agriculteurs lorsque leur utilisation de fongicides génère une externalité de production intertemporelle négative sous forme de résistance aux fongicides. Nous constatons que lorsque les agriculteurs font face à ce type d'externalité, ils choisissent des niveaux de fongicides qui exacerbent la résistance aux fongicides. Nous examinons un mécanisme de compensation dans lequel un agriculteur réduit l'utilisation de fongicides en échange d'un transfert. Ce mécanisme réduit l'utilisation de fongicides; cependant, la désinformation sur la gravité de la résistance aux fongicides génère des distorsions. Nous constatons que la désinformation unilatérale pourrait amener un agriculteur à choisir des niveaux de fongicides socialement optimaux, ce qui rend le mécanisme d'indemnisation moins nécessaire. En outre, nous montrons que lorsque les deux agriculteurs sont mal informés, le mécanisme pourrait amener les agriculteurs à choisir des niveaux de fongicides inférieurs au niveau socialement optimal en fonction de leurs croyances pessimistes sur la sévérité de la résistance aux fongicides.

Suggested Citation

  • Chelsea A. Pardini & Ana Espínola‐Arredondo, 2023. "Fungicide resistance and misinformation: A game theoretic approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(2), pages 171-201, June.
    • Handle: RePEc:bla:canjag:v:71:y:2023:i:2:p:171-201
    DOI: 10.1111/cjag.12334
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