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Incentives to Reduce Crop Trait Durability

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  • Stefan Ambec
  • Corinne Langinier
  • Stéphane Lemarié

Abstract

To reduce the competition from farmers who self-produce seed, an inbred line seed producer can switch to nondurable hybrid seed. In a two-period framework, we first investigate the impact of crop durability on self-production, pricing and switching decisions. Second, we study how the introduction of a fee paid by self-producing farmers affects those decisions. We find that the monopolist may produce technologically dominated hybrid seed in order to extract more surplus from farmers. Further, the introduction of a self-production fee improves efficiency. Copyright 2008, Oxford University Press.

Suggested Citation

  • Stefan Ambec & Corinne Langinier & Stéphane Lemarié, 2008. "Incentives to Reduce Crop Trait Durability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 379-391.
    • Handle: RePEc:oup:ajagec:v:90:y:2008:i:2:p:379-391
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01110.x
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    1. Khachaturyan, Marianna & Yiannaka, Amalia, 2006. "The market acceptance and welfare impacts of genetic use restriction technologies (GURTS)," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10097, European Association of Agricultural Economists.
    2. Hervouet, Adrien & Langinier, Corinne, 2018. "Plant Breeders’ Rights, Patents, and Incentives to Innovate," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(1), January.
    3. Adrien Hervouet & Marc Baudry, 2011. "Promoting innovation in the seed market and biodiversity: the role of IPRs and commercialization rules," Post-Print hal-02012239, HAL.
    4. Derek Eaton, 2013. "Innovation and IPRs in the Agricultural Seed Sector," CIES Research Paper series 19-2013, Centre for International Environmental Studies, The Graduate Institute.
    5. Richard S. Gray, 2021. "In defense of farmer saved seeds," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(4), pages 451-460, December.
    6. Eaton, Derek, 2014. "A model of IPRs in the international supply chain of seeds and agricultural production," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182643, European Association of Agricultural Economists.
    7. Baudry Marc & Hervouet Adrien, 2016. "Innovation in the Seed Market: The Role of IPRs and Commercialization Rules," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 51-68, May.
    8. Jaeck, Melanie & Lifran, Robert, 2011. "The Economic Determinants of the On-farm Management of Rice Cultivars in the Rhone River Delta (France)," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115508, New Zealand Agricultural and Resource Economics Society.
    9. Eaton, Derek, 2015. "Innovation and IPRs for Agricultural Crop Varieties as Intermediate Goods," 2015 Conference, August 9-14, 2015, Milan, Italy 211581, International Association of Agricultural Economists.
    10. Adrien Hervouet & Stéphane Lemarié, 2023. "The Economics of Royalty Rates in Plant Breeding," Working Papers 2023-03, Grenoble Applied Economics Laboratory (GAEL).

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