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Certification of Pork Products

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Author Info
Nilsson, Tomas
Foster, Ken

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Abstract

The objective of this paper is to provide insights on the welfare distributional impact on consumer and producer welfare resulting from the development and implementation of a credence certification program in the U.S. pork sector. The certification program can provide various levels of tracking and tracing in the marketing chain. The modeling framework follows that of Nilsson (2005), which encompasses product differentiation and substitution across meat products at the consumer level and across live animal types at the farm level. Processors and retailers have potentially bilateral market power and can supply either or both certified and conventional meat products. One of the key findings is that while as the conventional market contracts and the certified market expands as expected, the magnitude depends on whether suppliers are single-or multiproduct providers. On aggregate, total welfare increases by 15 to 24 percent depending on industry structure.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19350.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19350

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Keywords: Marketing;

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  7. Lutz, Stefan & Lyon, Thomas P & Maxwell, John W, 2000. "Quality Leadership When Regulatory Standards Are Forthcoming," Journal of Industrial Economics, Blackwell Publishing, vol. 48(3), pages 331-48, September. [Downloadable!] (restricted)
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  18. Aviv Nevo, 2003. "New Products, Quality Changes, and Welfare Measures Computed from Estimated Demand Systems," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 266-275, 01. [Downloadable!] (restricted)
    Other versions:
  19. Jerry A. Hausman, 1994. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Working Papers 4970, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  20. Aviv Nevo, 1998. "Measuring Market Power in the Ready-to-Eat Cereal Industry," NBER Working Papers 6387, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  21. Tomas Nilsson & Paul Preckel & Bo Öhlmer & Hans Andersson, 2003. "Revisiting the Role of Common Labeling in a Context of Asymmetric Information: Critique and Extensions," ERSA conference papers ersa03p513, European Regional Science Association. [Downloadable!]
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