Managing animal health status information in the cattle market
The paper analyses the problem of information in the cattle market, particularly as it relates to the status of animal health, and discusses ways to limit it with the view to improving social surplus. Against this background, it aims to achieve three major objectives. Firstly, it describes the ways of improving the level of information through such schemes as Conventional Warranties and Third Party Certification and the different choices made by sellers and buyers in the presence of these schemes. Secondly, it studies the various ways by which these schemes make an impact on equilibria in different markets (i.e., the pooling market and the premium market), and, consequently, on the social surplus. Thirdly, it identifies the necessary conditions for a third party/public decision-maker to increase social surplus and reduce the negative externality caused by disease by managing and supporting Third Party Certification. The paper shows that product certification and product warranty cannot coexist because product warranty is suboptimal. It also shows that certification, and a possible supporting of certification or animal testing does not necessarily improve the safety of the trade.
|Date of creation:||2008|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
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.:
- Allen, Douglas W, 1993. "Pot-Bellies, Cattle Breeds and Revealing Signals," Economic Inquiry, Western Economic Association International, vol. 31(3), pages 481-487, July.
- Miguel Carriquiry & Bruce A. Babcock, 2007.
"Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 89(1), pages 12-23.
- Carriquiry, Miguel A. & Babcock, Bruce A., 2004. "Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry," Staff General Research Papers Archive 12215, Iowa State University, Department of Economics.
- Carriquiry, Miguel A. & Babcock, Bruce A., 2005. "Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry," 2005 Annual meeting, July 24-27, Providence, RI 19549, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Miguel Carriquiry & Bruce A. Babcock, 2004. "Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry," Center for Agricultural and Rural Development (CARD) Publications 04-wp377, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Carriquiry, Miguel & Babcock, Bruce, 2007. "Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry," ISU General Staff Papers 200701010800001396, Iowa State University, Department of Economics.
- Athanasios G. Chymis & Harvey S. James & Srinivasa Konduru & Vern L. Pierce & Robert L. Larson, 2007. "Asymmetric information in cattle auctions: the problem of revaccinations," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 79-88, 01.
- Chymis, Athanasios G. & James, Harvey S., Jr. & Konduru, Srinivasa & Pierce, Vern L., 2004. "Asymmetric Information In Cattle Auctions: The Problem Of Revaccinations," Working Papers 26039, University of Missouri Columbia, Department of Agricultural Economics.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:44064. 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: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.