The Economics of Voluntary Traceability in Multi-Ingredient Food Chains
The consumption of multi-ingredient foods is increasing across the globe. Traceability can be used as a tool to gather information about and manage food safety risks associated with these types of products. The authors investigate the choice of voluntary traceability in three-tiered multi-ingredient food supply chains. They propose a framework based on vertical control and agency theory to model three dimensions of traceability systems: depth, breadth, and precision. Their analysis has three main results. First, full traceability is feasible as long as there are net benefits to a downstream firm that demands traceability across all ingredients. Second, horizontal network externalities are positive because an increase in the level of traceability in one ingredient requires a similar increase in others. Finally, vertical network effects will be positive insofar as willingness to pay and probabilities of food safety hazards increase. [EconLit Classification: Q130, L140]. © 2010 Wiley Periodicals, Inc.
Volume (Year): 26 (2010)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Dickinson & DeeVon Bailey, 2001.
"Meat traceability: are U.S. consumers willing to pay for it?,"
2001-14, Utah State University, Department of Economics.
- Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
- David Dickinson & DeeVon Bailey, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Working Papers 2002-07, Utah State University, Department of Economics.
- Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U. S. Consumers Willing To Pay For It?," 2002 Annual meeting, July 28-31, Long Beach, CA 19670, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Thomas L. Sporleder & LeeAnn E. Moss, 2002. "Knowledge Management Frontier in the Global Food System: Network Embeddedness and Social Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1345-1352.
- Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service.
- Jill E. Hobbs, 2004. "Information asymmetry and the role of traceability systems," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 397-415.
- Starbird, S. Andrew & Amanor-Boadu, Vincent, 2004. "Traceability, Inspection, And Food Safety," 2004 Annual meeting, August 1-4, Denver, CO 20381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Moises A. Resende-Filho & Brian L. Buhr, 2008. "A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-site Lesion Control in Fed Cattle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1091-1102.
- Resende-Filho, Moises & Buhr, Brian, 2006. "A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle," MPRA Paper 467, University Library of Munich, Germany.
- Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03.
- Wim Verbeke, 2005. "Agriculture and the food industry in the information age," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 347-368, September.
- Meuwissen, Miranda P.M. & Velthuis, Annet G.J. & Hogeveen, Henk & Huirne, Ruud B.M., 2003. "Traceability And Certification In Meat Supply Chains," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(2).
- Starbird S. Andrew & Amanor-Boadu Vincent, 2007. "Contract Selectivity, Food Safety, and Traceability," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-22, February.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:26:y:2010:i:1:p:122-142. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.