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Pre-empting public regulation with private food quality standards

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  • Jill J. McCluskey
  • Jason A. Winfree

Abstract

There has been a great deal of recent growth in the area of private food quality standards. This article analyses the incentives for setting private quality standards before governments do so. Since food quality standards are generally multifaceted, different types of standards will affect revenues differently. Our model shows that private firms can pre-empt public regulation by setting their own private food quality standards in order to choose the type of standards that minimises their costs. The emergence of private food standards in grocery retailing is discussed in this context. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Jill J. McCluskey & Jason A. Winfree, 2009. "Pre-empting public regulation with private food quality standards," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 525-539, December.
  • Handle: RePEc:oup:erevae:v:36:y:2009:i:4:p:525-539
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    File URL: http://hdl.handle.net/10.1093/erae/jbp040
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    Cited by:

    1. Thijs Vandemoortele & Koen Deconinck, 2014. "When Are Private Standards More Stringent than Public Standards?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 154-171.
    2. Russo, Carlo & Perito, Maria Angela & Di Fonzo, Antonella, 2014. "Using Private Food Safety Standards to Manage Complexity: A Moral Hazard Perspective," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), June.
    3. 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..
    4. 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, pages 1189-1201.
    5. Axel Marx & Miet Maertens & Johan Swinnen & Jan Wouters (ed.), 2012. "Private Standards and Global Governance," Books, Edward Elgar Publishing, number 14250, September.
    6. A. Marx & M. Maertens & J. Swinnen, 2012. "Conclusion – Private Standards: a Global Governance Tool?," Chapters,in: Private Standards and Global Governance, chapter 11 Edward Elgar Publishing.
    7. Shafaeddin, Mehdi, 2007. "Who Does Bear the Costs of Compliance with Sanitary and Phytosanitary Measures in Poor Countries?," MPRA Paper 6646, University Library of Munich, Germany.
    8. Russo, Carlo & Perito, Maria Angel & Di Fonzo, Antonella, 2014. "The Strategic Use of Private Food Safety Standards to Manage Complexity: a Moral Hazard Perspective," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182795, European Association of Agricultural Economists.

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