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Pre-empting public regulation with private food quality standards

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  • Jill J. McCluskey
  • Jason A. Winfree

Abstract

There has been a great deal of recent growth in the area of private food quality standards. This article analyses the incentives for setting private quality standards before governments do so. Since food quality standards are generally multifaceted, different types of standards will affect revenues differently. Our model shows that private firms can pre-empt public regulation by setting their own private food quality standards in order to choose the type of standards that minimises their costs. The emergence of private food standards in grocery retailing is discussed in this context. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Jill J. McCluskey & Jason A. Winfree, 2009. "Pre-empting public regulation with private food quality standards," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 525-539, December.
    • Handle: RePEc:oup:erevae:v:36:y:2009:i:4:p:525-539
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    File URL: http://hdl.handle.net/10.1093/erae/jbp040
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    Citations

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    Cited by:

    1. Thijs Vandemoortele & Koen Deconinck, 2014. "When Are Private Standards More Stringent than Public Standards?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 154-171.
    2. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    3. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    4. Axel Marx & Miet Maertens & Johan Swinnen & Jan Wouters (ed.), 2012. "Private Standards and Global Governance," Books, Edward Elgar Publishing, number 14250.
    5. A. Marx & M. Maertens & J. Swinnen, 2012. "Conclusion – Private Standards: a Global Governance Tool?," Chapters, in: Axel Marx & Miet Maertens & Johan Swinnen & Jan Wouters (ed.), Private Standards and Global Governance, chapter 11, Edward Elgar Publishing.
    6. Olper, Alessandro, 2017. "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.
    7. Vigani, Mauro & Olper, Alessandro, 2014. "GM-free private standards, public regulation of GM products and mass media," Environment and Development Economics, Cambridge University Press, vol. 19(6), pages 743-768, December.
    8. Russo, Carlo & Perito, Maria Angel & Di Fonzo, Antonella, 2014. "The Strategic Use of Private Food Safety Standards to Manage Complexity: a Moral Hazard Perspective," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182795, European Association of Agricultural Economists.
    9. Huffman Wallace & McCluskey Jill, 2017. "Food Labels, Information, and Trade in GMOs," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(1), pages 1-9, January.
    10. Russo, Carlo & Perito, Maria Angela & Di Fonzo, Antonella, 2014. "Using Private Food Safety Standards to Manage Complexity: A Moral Hazard Perspective," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-15.
    11. 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.
    12. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    13. Shafaeddin, Mehdi, 2007. "Who Does Bear the Costs of Compliance with Sanitary and Phytosanitary Measures in Poor Countries?," MPRA Paper 6646, University Library of Munich, Germany.
    14. Araya, Nicolás & Correa, Felipe, 2023. "Certificaciones empresariales de sostenibilidad en América Latina y el Caribe," Documentos de Proyectos 48907, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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