Modeling Interdependent Participation Incentives: Dynamics of a Voluntary Livestock Disease Control Program
This paper models producers' interdependent incentives to participate in a voluntary livestock disease control program. Under strategic complementarity among participation decisions, after a slow start momentum can build such that market premium for participation and participation rate increase sequentially. Non-participation, partial participation and full participation can all be Nash equilibria while participation cost heterogeneity will dispose the outcome toward incomplete participation. We find plausible conditions under which temporary government subsidies to the least cost-effective producers causes tipping toward full participation. Applying parameters from the literature on Johnes' disease, we illustrate factors that may affect participation. These include cost heterogeneity and program effectiveness.
|Date of creation:||Apr 2012|
|Contact details of provider:|| Postal: 578 Heady Hall, Ames, Iowa 50011-1070|
Phone: (515) 294-1183
Fax: (515) 294-6336
Web page: http://www.card.iastate.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fares, M'hand & Rouviere, Elodie, 2010.
"The implementation mechanisms of voluntary food safety systems,"
Elsevier, vol. 35(5), pages 412-418, October.
- M'Hand Fares & Elodie Rouviere, 2010. "The implementation mechanisms of voluntary food safety systems," Post-Print hal-01323222, HAL.
- Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
- Na Li Dawson & Kathleen Segerson, 2003. "Voluntary Agreements with Industries: Participation Incentives with Industry-wide Targets," Working papers 2004-06, University of Connecticut, Department of Economics.
- Olmstead, Alan L. & Rhode, Paul W., 2004. "An Impossible Undertaking: The Eradication of Bovine Tuberculosis in the United States," The Journal of Economic History, Cambridge University Press, vol. 64(03), pages 734-772, September.
- W. Kip Viscusi, 1978. "A Note on "Lemons" Markets with Quality Certification," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 277-279, Spring.
- Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
- Benjamin M. Gramig & Richard D. Horan & Christopher A. Wolf, 2008. "Livestock Disease Indemnity Design When Moral Hazard Is Followed by Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 627-641.
- Gramig, Benjamin M. & Horan, Richard D. & Wolf, Christopher A., 2008. "Livestock Disease Indemnity Design When Moral Hazard is Followed by Adverse Selection," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6542, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Stranlund John K., 1995. "Public Mechanisms to Support Compliance to an Environmental Norm," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 205-222, March.
- Wu, JunJie & Babcock, Bruce A., 1999. "The Relative Efficiency of Voluntary vs Mandatory Environmental Regulations," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 158-175, September.
- Wu, JunJie & Babcock, Bruce, 1999. "The Relative Efficiency of Voluntary vs Mandatory Environmental Regulation," ISU General Staff Papers 199909010700001199, Iowa State University, Department of Economics.
- Glenn Sheriff & Daniel Osgood, 2010. "Disease Forecasts and Livestock Health Disclosure: A Shepherd's Dilemma," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 776-788.
- Olmstead, Alan L. & Rhode, Paul W., 2007. "Not on My Farm! Resistance to Bovine Tuberculosis Eradication in the United States," The Journal of Economic History, Cambridge University Press, vol. 67(03), pages 768-809, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:12-wp527. 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: ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.