A partial-equilibrium, two-country model is developed to analyze implications from the introduction of genetically modified (GM) products. In the model, innovators hold proprietary rights, farmers are (competitive) adopters, some consumers deem GM food to be inferior in quality to traditional food, and the mere introduction of GM crops affects the costs of non-GM food (because of costly identity preservation). Among the results derived, it is shown that, although GM innovations have the potential to improve efficiency, some groups can be made worse off. Indeed, it is even possible that the costs induced by GM innovations outweigh the efficiency gains. Key words: biotechnology, food labeling, identity preservation, innovations, intellectual property rights, international trade, nontariff barriers, regulation.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
2109.
Length: Date of creation: 04 Jun 2002 Date of revision: Publication status: Published in American Journal of Agricultural Economics, August 2004, Vol. 86, No. 3, pp. 634-648. Handle: RePEc:isu:genres:2109
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References listed on IDEAS 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.:
Lapan, Harvey E & Moschini, Giancarlo, 2000.
"Incomplete Adoption of a Superior Innovation,"
Economica,
London School of Economics and Political Science, vol. 67(268), pages 525-42, November.
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