IDEAS home Printed from https://ideas.repec.org/a/ags/aesjfr/405351.html

Improving Food Quality through Institutional Innovations: Using a Free-Rider Approach for Collective Action

Author

Listed:
  • Nuppenau, Ernst-August

Abstract

This paper applies an innovation from institution economics to agribusiness: profit (cost) sharing as arrangements to promote public good provision. It outlines how a team work approach can be employed to promote food quality. In institutional economics it was recently suggested to use sharing arrangements to overcome the problem of externalities, in particular by using the above mentioned team work approach. Cost sharing as “team work” is analyzed in this paper as a novel institution to improve food quality, then by indirectly creating incentives to overcome the public good character of “quality”. It is assumed that consumers recognize industry quality; not individual by firm in case of asymmetric information. We trans­late a general approach of negative externality to a positive one. (1) We make a reference to the current state of art on how food quality depends on joint efforts of an industry. The aim is to get a better image and discuss the extent to which group efforts are needed to improve quality. (2) We present a mathematical approach on team work for quality. Quality is seen as positive externality and (3) team building is modelled as a likely a process of forming groups sharing efforts in food industries. Finally some remarks are made on how to actively stimulate the needed process of team formation. Also the role of the govern­ment is addressed. At the core of the paper we see the argument that free riding on quality images can be avoided if collective action prevails. A team is modeled as partnership of producers in which costs for image raising are shared. A prerequisite is that economies of scale and jointness in image exist.

Suggested Citation

  • Nuppenau, Ernst-August, 2016. "Improving Food Quality through Institutional Innovations: Using a Free-Rider Approach for Collective Action," Journal of Food Research, Canadian Center of Science and Education, vol. 5(3).
  • Handle: RePEc:ags:aesjfr:405351
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/405351/files/56199-210563-1-PB.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
    2. Gilg, Andrew W. & Battershill, Martin, 1998. "Quality farm food in Europe: a possible alternative to the industrialised food market and to current agri-environmental policies: lessons from France," Food Policy, Elsevier, vol. 23(1), pages 25-40, February.
    3. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    4. Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.
    2. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    3. Maryono, Maryono & Killoes, Aditya Marendra & Adhikari, Rajendra & Abdul Aziz, Ammar, 2024. "Agriculture development through multi-stakeholder partnerships in developing countries: A systematic literature review," Agricultural Systems, Elsevier, vol. 213(C).
    4. Alessandro Olper & Johan Swinnen, 2013. "Mass Media and Public Policy: Global Evidence from Agricultural Policies," The World Bank Economic Review, World Bank, vol. 27(3), pages 413-436.
    5. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    6. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    7. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    8. Bertramsen, Sherry K. & Hguyen, Genevieve & Dobbs, Thomas L., 2002. ""Quality" And "Eco-Labeling" Of Food Products In France And The United States," Economics Staff Papers 32022, South Dakota State University, Department of Economics.
    9. Allison Benson & Jean-Paul Faguet & Maria del pilar LÔøΩpez Uribe, 2020. "Increasing Access to Agricultural Credit: The Heterogeneous Effects of Collective Action," Documentos CEDE 18347, Universidad de los Andes, Facultad de Economía, CEDE.
    10. Vidyahwati Tenrisanna & Mohammad Mafizur Rahman & Rasheda Khanam, 2016. "Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 15(2), pages 145-159, December.
    11. Fredrick Ajwang, 2020. "Responsive Regulation and Its Implications for Smallholder Participation in the Kenyan Fresh Fruit and Vegetable Export Value Chain," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1288-1311, September.
    12. Rubio Jesús Hernández & Gómez Emilio Galdeano & Barranco Maria del Carmen García & Mesa Juan Carlos Pérez, 2025. "The Food Safety Level in the European Union Underpinned by the Performance of the Private Companies," Business Systems Research, Paradigm, vol. 16(2), pages 325-343.
    13. Houghton, J.R. & Rowe, G. & Frewer, L.J. & Van Kleef, E. & Chryssochoidis, G. & Kehagia, O. & Korzen-Bohr, S. & Lassen, J. & Pfenning, U. & Strada, A., 2008. "The quality of food risk management in Europe: Perspectives and priorities," Food Policy, Elsevier, vol. 33(1), pages 13-26, February.
    14. Marie Diekmann & Ludwig Theuvsen, 2019. "Value structures determining community supported agriculture: insights from Germany," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(4), pages 733-746, December.
    15. Julie Subervie & Isabelle Vagneron, 2012. "Can fresh produce farmers benefit from global gap certification? The case of lychee producers in Madagascar," Post-Print hal-02805034, HAL.
    16. Unknown, 2007. "Journal of International Agricultural Trade and Development, Volume 3, Number 1, Spring 2007," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 3(01).
    17. Brian Chiputwa & Matin Qaim, 2016. "Sustainability Standards, Gender, and Nutrition among Smallholder Farmers in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 52(9), pages 1241-1257, September.
    18. Mukhwami, Johnworker Toywa & Gathungu, Edith Wambui & Kalio, Aquilars Mutuku, . "Determinants of semi-formal credit participation among rural farm households in Kakamega County, Kenya," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 63(1).
    19. Anikó Bíró & Ágnes Szabó-Morvai, 2021. "Mass media coverage and vaccination uptake: evidence from the demand for meningococcal vaccinations in Hungary," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(6), pages 887-903, August.
    20. Sagar Wadkar & K. K. Tripathy & Vaishali Goswami & Naveen K. Singh, 2025. "Transforming the Food System Through PACS: A Policy-Driven Path Toward Sustainable and Fair Value Chains," International Journal of Global Business and Competitiveness, Springer, vol. 20(1), pages 127-141, December.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesjfr:405351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ccsenet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.