Welfare Effects of Mandatory Traceability When Firms are Heterogeneous
We develop a framework in which the cost of producing a quantity food and the cost of food safety differs across firms. We show that large firms may supply the safest food even though small firms have a cost advantage in producing safe food. The model shows that mandatory traceability can decrease the overall safety of food when small firms that supply the safest food exit the industry. Our model applies to food safety but can be applied to a wide range of issues related to regulation and product quality.
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- Hobbs, Jill E., 2004. "Traceability in the Canadian Red Meat Sector," Economic and Market Information 55304, Agriculture and Agri-Food Canada.
- Sébastien Pouliot & Daniel A. Sumner, 2008.
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- Pouliot, Sebastien & Sumner, Daniel A., 2010. "Traceability, Liability, and Incentives for Food Safety and Quality," Staff General Research Papers Archive 32126, Iowa State University, Department of Economics.
- Pouliot, Sebastien & Sumner, Daniel A., 2006. "Traceability, Liability and Incentives for Food Safety and Quality," 2006 Annual meeting, July 23-26, Long Beach, CA 21121, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- 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).
- 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.
- David Dickinson & DeeVon Bailey, 2001. "Meat traceability: are U.S. consumers willing to pay for it?," Working Papers 2001-14, Utah State University, Department of Economics.
- Crespi John M. & Marette Stephan, 2009. "Quality, Sunk Costs and Competition," Review of Marketing Science, De Gruyter, vol. 7(1), pages 1-36, August.
- Steven Berry & Joel Waldfogel, 2003.
"Product Quality and Market Size,"
NBER Working Papers
9675, National Bureau of Economic Research, Inc.
- Winfree, Jason A. & McCluskey, Jill J., 2003.
"Collective Reputation And Quality,"
2003 Annual meeting, July 27-30, Montreal, Canada
21927, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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