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Research incentives and tradeoff for improving productivity of different crops

Author

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  • Lemarié, Stéphane
  • Parenty, Sébastien

Abstract

This paper addresses the balance between different crops and its determination by research investment. This balance results from the cropping-plan decision of the farmers. This decision depends on various factors such as the seed performance, the pest problems, the output prices, etc. We show how the introduction of a productivity decrease due to the market size of each crop is likely to set out a more equilibriated market. Further, our model analysis the main determinants of research investment by a monopoly, and shows that this investment tends to equilibrate the market.

Suggested Citation

  • Lemarié, Stéphane & Parenty, Sébastien, 2016. "Research incentives and tradeoff for improving productivity of different crops," 149th Seminar, October 27-28, 2016, Rennes, France 245161, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa149:245161
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    File URL: http://ageconsearch.umn.edu/record/245161/files/Lemarie_Parenty_149EAAE_Rennes.pdf
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
    2. Pierre Dubois & Olivier de Mouzon & Fiona Scott-Morton & Paul Seabright, 2015. "Market size and pharmaceutical innovation," RAND Journal of Economics, RAND Corporation, vol. 46(4), pages 844-871, October.
    3. Charlot, Sylvie & Dridi, Chokri & Lemarié, Stéphane, 2015. "Market size and innovation: An application to the French seed market for large crops," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205520, Agricultural and Applied Economics Association.
    4. Shon M. Ferguson, 2015. "Endogenous Product Differentiation, Market Size and Prices," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 45-61, February.
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    Keywords

    Agricultural and Food Policy; Research and Development/Tech Change/Emerging Technologies;

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