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Joint Private Safety Standards and Vertical Relationships in Food Retailing

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  • Eric Giraud‐Héraud
  • Abdelhakim Hammoudi
  • Ruben Hoffmann
  • Louis‐Georges Soler

Abstract

In recent years, it has become common for downstream firms to impose Joint Private Standards (JPSs) on upstream producers. In this paper, we present an original model of a vertical relationship, explaining the incentives for and the effects of such JPSs with an example concerning food safety. The risk of a food crisis is endogenously determined. Using the concept of cartel stability (d’Aspremont et al., 1983), it is shown that liability rules are crucial for JPSs to emerge, that a JPS can become a minimum quality standard, and that a more stringent JPS does not necessarily reduce the market risk.

Suggested Citation

  • Eric Giraud‐Héraud & Abdelhakim Hammoudi & Ruben Hoffmann & Louis‐Georges Soler, 2012. "Joint Private Safety Standards and Vertical Relationships in Food Retailing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(1), pages 179-212, March.
    • Handle: RePEc:bla:jemstr:v:21:y:2012:i:1:p:179-212
    DOI: j.1530-9134.2011.00320.x
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    References listed on IDEAS

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    1. Malorgio, Giulio & Camanzi, Luca & Grazia, Cristina, 2012. "Supply chain relationships and quality certification schemes: a case study in fisheries," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2012(1), pages 1-18, August.
    2. Chad M. Baum, 2013. "Mass-Produced Food: the Rise and Fall of the Promise of Health and Safety," Papers on Economics and Evolution 2013-03, Philipps University Marburg, Department of Geography.
    3. Eric Giraud-Héraud & Jean-Pierre Ponssard & Bernard Sinclair Desgagné & Louis-Georges Soler, 2016. "The agro-food industry, public health, and environmental protection: investigating the Porter hypothesis in food regulation," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(2), pages 127-140, September.
    4. Claudio Soregaroli & Alessandro Varacca & Elena Claire Ricci & Silvia Platoni & Pascal Tillie & Stefanella Stranieri, 2022. "Voluntary standards as meso‐institutions: A Bayesian investigation of their relationships with transaction governance and risks," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1660-1681, December.
    5. Jianyu Yu & Zohra Bouamra-Mechemache, 2016. "Production standards, competition and vertical relationship," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 79-111.
    6. Cristina Grazia & Abdelhakim Hammoudi & Oualid Hamza, 2012. "Sanitary and phytosanitary standards: Does consumers’ health protection justify developing countries’ producers’ exclusion?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(2), pages 145-170.
    7. Grazia, Cristina & Hammoudi, Abdelkakim & Hamza, Oualid, 2012. "Sanitary and phytosanitary standards: Does consumers’ health protection justify developing countries’ producers’ exclusion?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 93(2).
    8. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    9. Cristina Grazia & Abdelhakim Hammoudi & Oualid Hamza, 2012. "Sanitary and phytosanitary standards: Does consumers’ health protection justify developing countries’ producers’ exclusion? [Standards sanitaires et phytosanitaires : la protection de la santé des ," Post-Print hal-02642925, HAL.
    10. Castellari, Elena & Soregaroli, Claudio & Venus, Thomas J. & Wesseler, Justus, 2018. "Food processor and retailer non-GMO standards in the US and EU and the driving role of regulations," Food Policy, Elsevier, vol. 78(C), pages 26-37.
    11. Gaigné, Carl & Larue, Bruno, 2013. "Quality Standards, International Trade and the Evolution of Industries," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150469, Agricultural and Applied Economics Association.
    12. Cristina Grazia & François Gusdorf & Abdelhakim Hammoudi, 2014. "Climate Change, Heterogeneities, and Stability of International Fiscal Harmonization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 579-603, August.
    13. Jesús Hernández-Rubio & Juan C. Pérez-Mesa & Laura Piedra-Muñoz & Emilio Galdeano-Gómez, 2018. "Determinants of Food Safety Level in Fruit and Vegetable Wholesalers’ Supply Chain: Evidence from Spain and France," IJERPH, MDPI, vol. 15(10), pages 1-15, October.
    14. Eric Giraud-Héraud & Cristina Grazia & Abdelhakim Hammoudi, 2012. "Explaining the Emergence of Private Standards in Food Supply Chains," Working Papers hal-00749345, HAL.

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