Carlsson, Fredrik () (Department of Economics, School of Economics and Commercial Law, Göteborg University) Frykblom, Peter (Department of Economics, Appalachian State University) Lagerkvist, Carl-Johan () (Department of Economics, Swedish University of Agricultural Sciences)
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Our increasingly heterogeneous food is at least partly due to concerns over conventional production of farm livestock. Some of these new products have been demand driven while others are a result of politically decided restrictions on production techniques. From a policy perspective, the interesting question is whether there exists a market failure. We suggest a survey design that enables the researcher to measure the eventual external market failures in farm livestock production. Applying this survey design to the question of battery cages in egg production, we cannot show that there exists a market failure. The policy implications are applicable to not only the question of egg production, they can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed. Logically, if an external effect cannot be shown, the consumer is better off herself making the choice of how her food is produced.
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Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number
119.
Length: 21 pages Date of creation: 24 Nov 2003 Date of revision: Handle: RePEc:hhs:gunwpe:0119
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden Phone: 031-773 10 00 Web page: http://www.handels.gu.se/econ/ More information through EDIRC
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