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Identity Preservation and False Labeling in the Food Supply Chain

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Author Info
Alexander E. Saak
Abstract

In this paper I address two issues pertaining to the market differentiation between non-genetically modified (non-GM) and genetically modified (GM) food varieties. First, I provide a cost-efficiency explanation of the discrepancy between the observed shares of identity preserved non-GM variety and the total supply of the variety. Second, I show that when products can be falsely labeled as non-GM, the share of false labeling depends on the level of identity preservation. In this context, I demonstrate that the share of falsely labeled supply can increase in response to harsher fines.

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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 02-wp295.

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Date of creation: Feb 2002
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Handle: RePEc:ias:cpaper:02-wp295

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bruce A. Babcock & John C. Beghin, 1999. "Potential Market for Non-GMO Corn and Soybeans," Center for Agricultural and Rural Development (CARD) Publications 99-bp27, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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  2. Bullock, David S. & Desquilbet, Marion & Nitsi, Elisavet, 2000. "The Economics Of Non-Gmo Segregation And Identity Preservation," 2000 Annual meeting, July 30-August 2, Tampa, FL 21845, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  3. Saak, Alexander & Hennessy, David A., 2002. "Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties," Staff General Research Papers 5026, Iowa State University, Department of Economics.
    Other versions:
  4. Polinsky, A Mitchell & Shavell, Steven, 1992. "Enforcement Costs and the Optimal Magnitude and Probability of Fines," Journal of Law & Economics, University of Chicago Press, vol. 35(1), pages 133-48, April.
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  5. McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April. [Downloadable!]
  6. Timothy J. Feddersen & Thomas W. Gilligan, 2001. "Saints and Markets: Activists and the Supply of Credence Goods," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 10(1), pages 149-171, 03. [Downloadable!] (restricted)
  7. Marette, Stephan & Bureau, Jean-Christophe & Gozlan, Estelle, 2000. "Product Safety Provision and Consumers' Information," Australian Economic Papers, Blackwell Publishing, vol. 39(4), pages 426-41, December. [Downloadable!] (restricted)
  8. Starbird, S. Andrew, 2000. "Designing Food Safety Regulations: The Effect Of Inspection Policy And Penalties For Noncompliance On Food Processor Behavior," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December. [Downloadable!]
  9. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  10. Louis Kaplow & Steven Shavell, 1994. "Accuracy in the Determination of Liability," NBER Working Papers 4203, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Segerson, Kathleen, 1998. "Mandatory vs. Voluntary Approaches to Food Safety," Research Reports 25188, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
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