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When Are Private Standards More Stringent than Public Standards?

Author

Listed:
  • Thijs Vandemoortele
  • Koen Deconinck

Abstract

Retailers' private standards are increasingly important for addressing consumer concerns about safety, quality, and social and environmental issues. Empirical evidence shows that these private standards are frequently more stringent than their public counterparts. This article develops a political economy model that helps explain this stylized fact. We show that if producers exercise their political power to persuade the government to impose a lower public standard, retailers may apply their market power to install a private standard at a higher level than the public one, depending on several factors.

Suggested Citation

  • Thijs Vandemoortele & Koen Deconinck, 2014. "When Are Private Standards More Stringent than Public Standards?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 154-171.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:1:p:154-171.
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    File URL: http://hdl.handle.net/10.1093/ajae/aat064
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    Cited by:

    1. Bazzani, Claudia & Gustavsen, Geir W. & Nayga, Rodolfo M. Jr. & Rickertsen, Kyrre, "undated". "Are Consumers’ Preferences for Food Values in the U.S. and Norway Similar? A Best-Worst Scaling Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235844, Agricultural and Applied Economics Association.
    2. repec:lic:licosd:36315 is not listed on IDEAS
    3. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    4. repec:lic:licosd:39217 is not listed on IDEAS
    5. 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.
    6. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    7. Venus, Thomas & Punt, Maarten & Wesseler, Justus, 2015. "Influence of voluntary GMO-free production standards on the reputation and flexibility of agricultural value chains," 2015 Conference, August 9-14, 2015, Milan, Italy 211920, International Association of Agricultural Economists.
    8. Nie, Wenjing & Abler, David & Li, Taiping, 2021. "Grading attribute selection of China's grading system for agricultural products: What attributes benefit consumers more?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    9. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.
    10. Johan Swinnen, 2014. "Global Agricultural Value Chains, Standards, and Development," RSCAS Working Papers 2014/30, European University Institute.
    11. Olper, Alessandro, . "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3).
    12. Annor, Prince B. & Kaitibie, Simeon & Lyne, Michael C., 2024. "GlobalGAP compliance costs in Ghana’s small-scale pineapple farming sector," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 63(01-2), July.
    13. Shingal, Anirudh & Ehrich, Malte, 2024. "The EU’s pesticides MRLs harmonization: effect on trade, prices and quality," Food Policy, Elsevier, vol. 125(C).
    14. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    15. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    16. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    17. repec:lic:licosd:33113 is not listed on IDEAS
    18. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    19. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    20. Monica Hernandez, 2019. "The Rising Importance of Non-tariff Measures and their use in Free Trade Agreements Impact Assessments," GDAE Working Papers 19-03, GDAE, Tufts University.
    21. Rutten, Martine & Achterbosch, Thom J. & de Boer, Imke J.M. & Cuaresma, Jesus Crespo & Geleijnse, Johanna M. & Havlík, Petr & Heckelei, Thomas & Ingram, John & Leip, Adrian & Marette, Stéphan & van Me, 2018. "Metrics, models and foresight for European sustainable food and nutrition security: The vision of the SUSFANS project," Agricultural Systems, Elsevier, vol. 163(C), pages 45-57.
    22. Thierry Brunelle & Raja Chakir & Alain Carpentier & Bruno Dorin & Daniel Goll & Nicolas Guilpart & Federico Maggi & David Makowski & Thomas Nesme & Jutta Roosen & Fiona Tang, 2024. "Reducing chemical inputs in agriculture requires a system change [La réduction des intrants chimiques dans l'agriculture nécessite un changement de système]," Post-Print hal-04644219, HAL.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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