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GM-free private standards, public regulation of GM products and mass media

Author

Listed:
  • Mauro Vigani
  • Alessandro Olper

Abstract

This paper provides evidence on private standards on genetically modified (GM) organisms for 44 retailers operating in 54 countries, distinguishing between retailers not using GM ingredients, and retailers using ingredients which are potentially GM in private label products. Using this information, we empirically investigate the drivers that induce retailers to adopting a GM-free private standard. The results show that many of the drivers highlighted in the literature, such as historical factors, communication infrastructure and sectoral conditions affect the likelihood of adopting a private standard. Moreover, we tested additional hypotheses from the political economy of standard formation and of mass media. Key results show that a higher share of public media reduces the probability of adopting GM-free private standards, while a higher heterogeneity in the GMO public standards increase this probability.

Suggested Citation

  • Mauro Vigani & Alessandro Olper, 2013. "GM-free private standards, public regulation of GM products and mass media," LICOS Discussion Papers 33113, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:33113
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    File URL: http://feb.kuleuven.be/drc/licos/publications/dp/dp331
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    References listed on IDEAS

    as
    1. Takeshima Hiroyuki & Gruère Guillaume P, 2011. "Pressure Group Competition and GMO Regulations in Sub-Saharan Africa - Insights from the Becker Model," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-19, July.
    2. Jill J. McCluskey & Johan F.M. Swinnen, 2004. "Political Economy of the Media and Consumer Perceptions of Biotechnology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1230-1237.
    3. Spence, Michael, 1976. "Product Differentiation and Welfare," American Economic Review, American Economic Association, vol. 66(2), pages 407-414, May.
    4. 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.
    5. Stromberg, David, 2001. "Mass media and public policy," European Economic Review, Elsevier, vol. 45(4-6), pages 652-663, May.
    6. Besley, Timothy & Burgess, Robin, 2001. "Political agency, government responsiveness and the role of the media," European Economic Review, Elsevier, vol. 45(4-6), pages 629-640, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Thijs Vandemoortele & Koen Deconinck, 2014. "When Are Private Standards More Stringent than Public Standards?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 154-171.
    2. Wesseler, Justus, 0. "Biotechnologies and agrifood strategies: opportunities, threats and economic implications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.

    More about this item

    Keywords

    GM-free private standards; vertical differentiation; political economics; media market;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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