Advanced Search
MyIDEAS: Login to save this article or follow this journal

Genetically Modified Organisms: Rights To Use Commodity Names and the Lemons Problem

Contents:

Author Info

  • Gray Richard

    (University of Saskatchewan)

  • Moss Charles B.

    (University of Florida)

  • Schmitz Andrew

    (University of Florida)

Abstract

Genetically modified crops have met some consumer opposition domestically and abroad. This opposition has resulted in variety market and policy reactions with a large potential to disrupt trade and to become a focus of international negotiations. In this paper we consider the spillover from adopters to the non-adopters and non-consumers of GM technology. In the absence of any (organizational) transaction costs the assignment of property right to use the name corn will result in Pareto improving decisions with respect to the introduction of GM technology. However, in the presence of transaction costs the ability to use generic crop names such as corn, the adopters of GM technology have the implicit right and will impose costs on participants in the non-GM marketing channel, by creating a lemons problem. This assignment of property rights can result in the commercial introduction of GM despite potential losses in overall social welfare. If the property rights are reassigned such that the innovators are forced to segregate their GM products through labeling laws, this preempts welfare decreasing technology introduction. The relative efficiency of either allocation of property rights depends on the cost savings, rate of adoption, segregation costs, and consumersÂ’ preference for the GM crop in question. This suggests that assignment of property rights may be more effective if done on a case-by-case basis rather than a one size fits all policy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.degruyter.com/view/j/jafio.2004.2.2/jafio.2004.2.2.1057/jafio.2004.2.2.1057.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 2 (2004)
Issue (Month): 2 (May)
Pages: 1-17

as in new window
Handle: RePEc:bpj:bjafio:v:2:y:2004:i:2:n:7

Contact details of provider:
Web page: http://www.degruyter.com

Order Information:
Web: http://www.degruyter.com/view/j/jafio

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Luc, Veyssiere, 2006. "Best Response to GMOs in Developing Countries," 2006 Annual meeting, July 23-26, Long Beach, CA 21075, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bpj:bjafio:v:2:y:2004:i:2:n:7. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.