Small is Beautiful? Firm's Size, Prevention & Food Safety
AbstractThe European General Food Law of 2005 and the newly promulgated FDA Food Safety Modernization Act (FFSMA) of 2010 ask all food operators to implement preventive efforts. In this article, we explore the link between firm’s size and preventive efforts. We show two main results. First, when there is no cross-contamination, small firms will provide higher preventive efforts than large firms. When there is crosscontamination, the effort-size curve may have a "inverted-U" shape. From our results we can argue that when implementing or enforcing food safety regulations, public authorities should consider both firms size and food safety hazard.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 123410.
Date of creation: 14 May 2012
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prevention effort; firm size; food safety; Agribusiness; Food Consumption/Nutrition/Food Safety; Industrial Organization; Risk and Uncertainty; Q18; L15; L5;
Find related papers by JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L5 - Industrial Organization - - Regulation and Industrial Policy
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