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Cost-Effective Hazard Control in Food Handling


  • Fox, John A.
  • Hennessy, David A.


We develop a bioeconomic model to investigate postharvest food quality control. The trade-off between costly intervention and economic damage is studied when economic parameters, such as fixed and variable costs of control, and biological parameters, such as the stochastic rate of contamination and the growth rate of contaminants, are altered. The model can accommodate alternative environmental settings. Regulations through random inspections and through terminal inspections are analyzed. As an illustration, optimal actions to control insect infestations in stored wheat are simulated and found to be in accord with commercial practice.

Suggested Citation

  • 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.
  • Handle: RePEc:isu:genres:1711

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    References listed on IDEAS

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    3. Peter C. Fishburn & R. Burr Porter, 1976. "Optimal Portfolios with One Safe and One Risky Asset: Effects of Changes in Rate of Return and Risk," Management Science, INFORMS, vol. 22(10), pages 1064-1073, June.
    4. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
    5. Ormiston, Michael B, 1992. "First and Second Degree Transformations and Comparative Statics under Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 33-44, February.
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    Cited by:

    1. Resende-Filho, Moises & Buhr, Brian, 2007. "Economics of traceability for mitigation of food recall costs," MPRA Paper 3650, University Library of Munich, Germany.
    2. Yigezu, Yigezu A. & Alexander, Corinne E. & Preckel, Paul V. & Maier, D.E. & Woloshuk, C.P. & Mason, L.J. & Lawrence, J. & Moog, D.J., 2008. "Optimal management of molds in stored corn," Agricultural Systems, Elsevier, vol. 98(3), pages 220-227, October.
    3. 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.
    4. Cristina Grazia & Abdelhakim Hammoudi & Oualid Hamza, 2012. "Sanitary and phytosanitary standards: Does consumers’ health protection justify developing countries’ producers’ exclusion?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(2), pages 145-170.
    5. Hirschauer, Norbert & Musshoff, Oliver, 2007. "A game-theoretic approach to behavioral food risks: The case of grain producers," Food Policy, Elsevier, vol. 32(2), pages 246-265, April.
    6. Eric Giraud-Héraud & Hakim Hammoudi & Louis-Georges Soler, 2006. "Food Safety, Liability and Collective Norms," Working Papers hal-00243034, HAL.
    7. Rouvière, Elodie, 2016. "Small is beautiful: firm size, prevention and food safety," Food Policy, Elsevier, vol. 63(C), pages 12-22.
    8. Elbakidze, Levan & McCarl, Bruce A., 2005. "Ex Ante Vs. Ex Post Bioterrorism Mitigation: Better Safe Than Sorry?," 2005 Annual meeting, July 24-27, Providence, RI 19191, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Hirschauer, Norbert & Musshoff, Oliver, 2006. "Trust and the Profitability of Rule-Breaking in Grain Production," 99th Seminar, February 8-10, 2006, Bonn, Germany 7754, European Association of Agricultural Economists.

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