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An Interdisciplinary Approach to White-collar Crime in the Food Sector

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Listed:
  • Hirschauer, Norbert
  • Musshoff, Oliver
  • Scheerer, Sebastian

Abstract

The probability that buyers are deceived with regard to the quality or safety of purchased products (moral hazard) increases with the profits which suppliers can earn through opportunistic behaviour. It decreases with the probability and level of losses that result from disclosure of malpractice. It also decreases with protective factors rooted in the suppliers' social contexts - such as values, emotional bonds etc. - that shield them from yielding to economic temptations. This paper describes how a systematic analysis of economic incentives and social context factors can be provided through an interdisciplinary approach which combines the analytical powers of microeconomics (game theory) and criminology (control theories). The approach is discussed with regard to food quality and safety threatened by moral hazard. Its essentials are illustrated through a case study of grain farmers who might be tempted to infringe upon production-related regulations.

Suggested Citation

  • Hirschauer, Norbert & Musshoff, Oliver & Scheerer, Sebastian, 2006. "An Interdisciplinary Approach to White-collar Crime in the Food Sector," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25688, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25688
    DOI: 10.22004/ag.econ.25688
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    References listed on IDEAS

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    1. Hirschauer, Norbert, 2004. "A model-based approach to moral hazard in food chains - What contribution do principal-agent-models make to the understanding of food risks induced by opportunistic behaviour?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 53(05), pages 1-14.
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    3. S. Andrew Starbird, 2005. "Moral Hazard, Inspection Policy, and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 15-27.
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    5. John A. Fox & David A. Hennessy, 1999. "Cost-Effective Hazard Control in Food Handling," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 359-372.
    6. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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