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Food Safety, Liability and Collective Norms

  • Eric Giraud-Héraud

    (CECO - Laboratoire d'econometrie de l'école polytechnique - CNRS - Polytechnique - X)

  • Hakim Hammoudi

    (UP1 - Université Panthéon-Sorbonne)

  • Louis-Georges Soler


Over the last few years, retailers have implemented new collective private norms in order to improve food safety and reduce the risks related to microbial contamination and pesticide residues. In this paper, we propose a model of vertical relationships in which a group of retailers imposes more stringent specifications to upstream producers. We consider that the contamination risk is endogenously determined by the efforts made by the producers in order to improve food safety. We also consider that the penalty costs – related to the liability rule in the event of a crisis – decrease accordingly as the requirement level of the collective norm rises. We show how the liability rule influences the level of the collective norm and the contamination risk

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Paper provided by HAL in its series Working Papers with number hal-00243034.

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Date of creation: 2006
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Handle: RePEc:hal:wpaper:hal-00243034
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  1. Barrett, James P. & Segerson, Kathleen, 1995. "Prevention And Treatment In Food Safety: An Analysis Of Conceptual Issues," Proceedings: The Economics of Reducing Health Risk from Food, June 6-7, 1995, Washington, D.C. 25956, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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  7. Hennessy, David A. & Roosen, Jutta & Miranowski, John, 2001. "Leadership and the Provision of Safe Food," Staff General Research Papers Archive 10549, Iowa State University, Department of Economics.
  8. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
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  10. Elamin H. Elbasha* & T. Lynn Riggs, 2003. "The effects of information on producer and consumer incentives to undertake food safety efforts: A theoretical model and policy implications," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 29-42.
  11. Lyon, Thomas P. & Maxwell, John W., 2003. "Self-regulation, taxation and public voluntary environmental agreements," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1453-1486, August.
  12. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
  13. Fox, John A. & Hennessy, David A., 1999. "Cost-Effective Hazard Control in Food Handling," Staff General Research Papers Archive 1711, Iowa State University, Department of Economics.
  14. Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June.
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