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Economic Effects of Purity Standards in Biotech Labeling Laws

  • Giannakas Konstantinos

    (University of Nebraska-Lincoln)

  • Kalaitzandonakes Nicholas

    (University of Missouri)

  • Magnier Alexander

    (University of Missouri)

  • Mattas Konstadinos

    (Aristotle University of Thessaloniki)

Registered author(s):

    This paper develops a model of heterogeneous consumer preferences and imperfectly competitive suppliers to analyze the market and welfare effects of purity standards for non-GM food products. Analytical results show that purity standards affect the equilibrium prices and quantities of both the GM and non-GM products as well as the welfare of the groups involved. A change in purity standards is shown to create winners and losers among the consumers and the suppliers of the GM and non-GM products. Our analysis provides insights on labeling policies and the position of interest groups in countries with different adoption of, and attitudes towards genetically modified products.

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    Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

    Volume (Year): 9 (2011)
    Issue (Month): 1 (April)
    Pages: 1-47

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    Handle: RePEc:bpj:bjafio:v:9:y:2011:i:1:n:1
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