Modern food production typically involves many interacting stages and two or more decision makers. There is reason to believe that inputs in determining quality likely complement. And it is not possible to regulate many of these inputs. In a food production system possessing these characteristics, we show that leadership by one or more firms through communicating actions may be used as a mechanism to increase overall food quality. As there may be no private incentive to lead, there may be strategic merit in assigning liability through legislation. We also suggest the possibility that genetics are leadership instruments in hog production systems.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
10549.
Length: Date of creation: 12 Jun 2003 Date of revision: Publication status: Published in American Journal of Agricultural Economics, November 2001, Vol. 83, pp. 862-874. Handle: RePEc:isu:genres:10549
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