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When are Private Standards more Stringent than Public Standards?

  • Vandemoortele, Thijs

Retailers’ private standards are increasingly important in addressing consumer concerns about safety, quality and social and environmental issues. Empirical evidence shows that these private standards are frequently more stringent than their public counterparts. I develop a political economy model that may contribute to explaining this stylized fact. I show that if producers exercise their political power to persuade the government to impose a lower public standard, retailers may apply their market power to install a private standard at a higher level than the public one.

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File URL: http://purl.umn.edu/115544
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Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 115544.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:115544
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  15. von Schlippenbach, Vanessa & Teichmann, Isabel, 2011. "The Strategic Use of Private Quality Standards in Food Supply Chains," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114519, German Association of Agricultural Economists (GEWISOLA).
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  27. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service.
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