When are Private Standards more Stringent than Public Standards?
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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| Date of creation: | 2011 |
| Date of revision: | |
| Handle: | RePEc:ags:eaae11:115544 |
| Contact details of provider: | Web page: http://www.eaae.orgEmail: More information through EDIRC
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- Lutz, Stefan & Lyon, Thomas P & Maxwell, John W, 2000. "Quality Leadership When Regulatory Standards Are Forthcoming," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 331-48, September.
- Arora, Seema & Gangopadhyay, Shubhashis, 1995. "Toward a theoretical model of voluntary overcompliance," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 289-309, December.
- Henson, Spencer J. & Hooker, Neal H., 2001. "Private Sector Management Of Food Safety: Public Regulation And The Role Of Private Controls," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 4(01).
- Johan F.M. Swinnen & Thijs Vandemoortele, 2008.
"The Political Economy of Nutrition and Health Standards in Food Markets ,"
Review of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 30(3), pages 460-468.
- Swinnen, Johan F.M. & Vandemoortele, Thijs, 2008. "The Political Economy of Nutrition and Health Standards in Food Markets," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44364, European Association of Agricultural Economists.
- Stefanie Kirchhoff, 2000. "Green Business and Blue Angels," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(4), pages 403-420, April.
- Jill J. McCluskey & Jason A. Winfree, 2009. "Pre-empting public regulation with private food quality standards," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 525-539, December.
- Maxwell, John W & Lyon, Thomas P & Hackett, Steven C, 2000.
"Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism,"
Journal of Law and Economics,
University of Chicago Press, vol. 43(2), pages 583-617, October.
- John W. Maxwell & Thomas P Lyon & Steven C.. Hackett, 1995. "Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism," University of Chicago - George G. Stigler Center for Study of Economy and State 122, Chicago - Center for Study of Economy and State.
- Maloney, Michael T & McCormick, Robert E, 1982. "A Positive Theory of Environmental Quality Regulation," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 99-123, April.
- Johan F.M. Swinnen & Thijs Vandemoortele, 2009. "Are food safety standards different from other food standards? A political economy perspective," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(4), pages 507-523, December.
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