IDEAS home Printed from https://ideas.repec.org/p/ags/eaae08/44064.html
   My bibliography  Save this paper

Managing animal health status information in the cattle market

Author

Listed:
  • Rat-Aspert, Olivier
  • Weldegebriel, Habtu T.
  • Stott, Alistair W.
  • Fourichon, C.

Abstract

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.

Suggested Citation

  • Rat-Aspert, Olivier & Weldegebriel, Habtu T. & Stott, Alistair W. & Fourichon, C., 2008. "Managing animal health status information in the cattle market," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44064, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44064
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/44064/files/318.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Allen, Douglas W, 1993. "Pot-Bellies, Cattle Breeds and Revealing Signals," Economic Inquiry, Western Economic Association International, vol. 31(3), pages 481-487, July.
    2. 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.
    3. 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, January.
    4. 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)

    More about this item

    Keywords

    Livestock Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.