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Pleasures of Cockaigne: Quality Gaps, Market Structure, and the Amount of Grading

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  • Sylvette Monier-Dilhan
  • Hervé Ossard

Abstract

The article explores under what circumstances high-quality producers would not voluntarily submit to grading when low-quality firms would readily do so and under what conditions high-quality firms would have a lesser proportion of their output graded than would their low-quality counterparts. It also investigates how market structure affects the decison to grade, establishing that a competitive industry carries out the optimal amount of grading. When some firms have finite market shares, the industry engages in excessive grading. Copyright 1999, Oxford University Press.

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File URL: http://hdl.handle.net/10.2307/1244010
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 81 (1999)
Issue (Month): 3 ()
Pages: 501-511

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Handle: RePEc:oup:ajagec:v:81:y:1999:i:3:p:501-511

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Cited by:
  1. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
  2. Hueth, Brent & Marcoul, Philippe & Lawrence, John D., 2007. "Grader Bias in Cattle Markets? Evidence from Iowa," Staff General Research Papers 11465, Iowa State University, Department of Economics.
  3. Auriol, Emmanuelle & Schilizzi, Steven, 2003. "Quality Signaling through Certification. Theory and an Application to Agricultural Seed Market," IDEI Working Papers 165, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-, December.
  5. J.M. Bourgeon & B. Coestier, 2001. "Producer Organizations and Quality Management," THEMA Working Papers 2001-15, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  6. J. M. Crespi & S. Marette, 1999. "Cartel stability and suality signalling," THEMA Working Papers 99-29, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  7. Merel, Pierre R. & Carter, Colin A., 2005. "The Coexistence of GM and non-GM Crops and the Role of Consumer Preferences," 2005 Annual meeting, July 24-27, Providence, RI 19512, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Brown, Mark G. & Spreen, Thomas H. & Muraro, Ronald P., 1999. "Fresh Versus Processed Utilization Of Florida Grapefruit," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(3), November.

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