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Identity Preservation And False Non-Gmo Labeling In The Food Supply Chain

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  • Saak, Alexander E.

Abstract

This paper addresses two issues pertaining to the market differentiation between non-genetically modified and genetically modified food varieties. First, a cost-efficiency explanation of the discrepancy between the observed shares of identity preserved non-genetically modified variety and the total supply of the variety is provided. Second, it is shown that when products can be falsely labeled as non-genetically modified, the share of false labeling depends on the level of identity preservation. Also in this context, it is demonstrated that the share of falsely labeled supply can increase in response to harsher fines.

Suggested Citation

  • Saak, Alexander E., 2003. "Identity Preservation And False Non-Gmo Labeling In The Food Supply Chain," 2003 Annual meeting, July 27-30, Montreal, Canada 22182, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22182
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    File URL: http://purl.umn.edu/22182
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    References listed on IDEAS

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    1. Bruce A. Babcock & John C. Beghin, 1999. "Potential Market for Non-GMO Corn and Soybeans," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-bp27, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    2. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    3. Alexander E. Saak & David A. Hennessy, 2002. "Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 308-319.
    4. Kathleen Segerson, 1999. "Mandatory versus voluntary approaches to food safety," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 53-70.
    5. Marette, Stephan & Bureau, Jean-Christophe & Gozlan, Estelle, 2000. "Product Safety Provision and Consumers' Information," Australian Economic Papers, Wiley Blackwell, vol. 39(4), pages 426-441, December.
    6. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    7. McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
    8. Starbird, S. Andrew, 2000. "Designing Food Safety Regulations: The Effect Of Inspection Policy And Penalties For Noncompliance On Food Processor Behavior," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December.
    9. Segerson, Kathleen, 1998. "Mandatory vs. Voluntary Approaches to Food Safety," Research Reports 25188, University of Connecticut, Food Marketing Policy Center.
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    Keywords

    Agribusiness;

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