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Can Quality Revitalize the Alaskan Salmon Industry?

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Author Info
Babcock, Bruce A.
Weninger, Quinn

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Abstract

Declining salmon prices, due primarily to expansion of farmed salmon production, have reduced revenues for Alaska’s wild salmon fisheries by roughly 62 percent over the past 10 years. One possibility for reversing this trend is to differentiate wild and farmed salmon in consumer markets through quality improvements and marketing. We use a simple conceptual model to highlight the challenges that Alaska’s wild salmon industry must overcome before the industry is likely to see significant revenue gains from increased quality. Our tentative conclusion is that product differentiation could increase profits for wild salmon. However, implementation may require significant departures from traditional production and management practices and possibly an amendment to the Alaska state constitution. Keywords: product differentiation, salmon, quality assurance.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11672.

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Date of creation: 09 Apr 2004
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Handle: RePEc:isu:genres:11672

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  1. Rothschild, Michael & Stiglitz, Joseph E., 1971. "Increasing risk II: Its economic consequences," Journal of Economic Theory, Elsevier, vol. 3(1), pages 66-84, March. [Downloadable!] (restricted)
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  1. Pennerstorfer, Dieter & Weiss, Christoph R., 2007. "Do Cooperatives Offer High Quality Products?," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9403, European Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-12-21.


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