A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle
This article investigates the economic value and the optimal expected traceback rate of success for a traceability system with a case study of injection-site lesions in fed cattle in the US. By maintaining the identity of the feedlot owners corresponding to retail beef cuts, a traceability system enables the employment of incentive mechanisms by a meat packer to overcome supply chain information asymmetry. Results of this article show that the first-best action of producers may be induced by meat packers with incentive mechanisms created with a low expected traceback rate of success. This suggests that even inexpensive traceability systems may induce appropriate actions by producers and objectives of inducing compliance by suppliers may be less costly than objectives of recall.
|Date of creation:||14 Oct 2006|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- 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.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:467. 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: (Joachim Winter)
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.