IDEAS home Printed from https://ideas.repec.org/p/ris/kngedp/2000_008.html
   My bibliography  Save this paper

Planned Obsolescence and Plant Breeding: Empirical Evidence from Wheat Breeding in the UK (1965-1995)

Author

Listed:
  • Rangnekar, Dwijen

    (University College London)

Abstract

Models predict that oligopolists producing a durable good have an incentive to reduce the durability of the good as a means to appropriate the returns to investments in R&D. Using these theoretical insights, the paper empirically examines these strategies of appropriation in wheat breeding. Breeders face a unique appropriation problem because plant varieties (a durable good) demonstrate easy reproducibility and heritability of characteristics. In addition, the available legal scope of protection, till recent revisions, has tended to provide limited protection compared to protection available in other sectors. Strategies of planned obsolescence are indicated in the effort to reduce the durability of plant varieties so as to induce regular replacement purchases by farmers. Empirical evidence of the strategy is provided in decreasing tendency of the market-weighted age of varieties, which falls from 13 years in the 1960s to 5 years in the 1990s. In addition, the paper reports evidence of a lax approach towards developing broad-based disease resistance, which can be interpreted as a means to support the strategy of planned obsolescence.

Suggested Citation

  • Rangnekar, Dwijen, 2000. "Planned Obsolescence and Plant Breeding: Empirical Evidence from Wheat Breeding in the UK (1965-1995)," Economics Discussion Papers 2000-8, School of Economics, Kingston University London.
  • Handle: RePEc:ris:kngedp:2000_008
    as

    Download full text from publisher

    File URL: http://staffnet.kingston.ac.uk/~ku33681/RePEc/kin/papers/2000_008.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    2. Swan, Peter L, 1970. "Durability of Consumption Goods," American Economic Review, American Economic Association, vol. 60(5), pages 884-894, December.
    3. Avinger, Robert L, Jr, 1981. "Product Durability and Market Structure: Some Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 29(4), pages 357-374, June.
    4. Knudson, Mary & Hansen, LeRoy, 1991. "Intellectual Property Rights and the Private Seed Industry," Agricultural Economic Reports 308158, United States Department of Agriculture, Economic Research Service.
    5. Michael Waldman, 1993. "A New Perspective on Planned Obsolescence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 273-283.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rangnekar, Dwijen, 2000. "Plant breeding, biodiversity loss and intellectual property rights," Economics Discussion Papers 2000-5, School of Economics, Kingston University London.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dwijen Rangnekar, 2002. "R&D appropriability and planned obsolescence: empirical evidence from wheat breeding in the UK (1960--1995)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(5), pages 1011-1029, November.
    2. Eric W. Bond & Toshiaki Iizuka, 2014. "Durable Goods Price Cycles: Theory And Evidence From The Textbook Market," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 518-538, April.
    3. Carlaw, Kenneth I., 2005. "Optimal obsolescence," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 69(1), pages 21-45.
    4. Blonigen, Bruce A. & Knittel, Christopher R. & Soderbery, Anson, 2017. "Keeping it fresh: Strategic product redesigns and welfare," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 170-214.
    5. Justin P. Johnson & Michael Waldman, 2010. "Leasing, Lemons, and Moral Hazard," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 307-328, May.
    6. Roland Strausz, 2009. "Planned Obsolescence as an Incentive Device for Unobservable Quality," Economic Journal, Royal Economic Society, vol. 119(540), pages 1405-1421, October.
    7. Eric Brouillat, 2015. "Live fast, die young? Investigating product life spans and obsolescence in an agent-based model," Journal of Evolutionary Economics, Springer, vol. 25(2), pages 447-473, April.
    8. Eric Brouillat, 2011. "Durability of consumption goods and market competition: an agent-based modelling," Post-Print hal-00780254, HAL.
    9. Fethke, Gary & Jagannathan, Raj, 2000. "Why would a durable good monopolist also produce a cost-inefficient nondurable good?," International Journal of Industrial Organization, Elsevier, vol. 18(5), pages 793-812, July.
    10. Judith Chevalier & Austan Goolsbee, 2009. "Are Durable Goods Consumers Forward-Looking? Evidence from College Textbooks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1853-1884.
    11. Jayarajan, Dinakar & Siddarth, S. & Silva-Risso, Jorge, 2018. "Cannibalization vs. competition: An empirical study of the impact of product durability on automobile demand," International Journal of Research in Marketing, Elsevier, vol. 35(4), pages 641-660.
    12. Choi Jay Pil, 2001. "Planned Obsolescence As A Signal of Quality," International Economic Journal, Taylor & Francis Journals, vol. 15(4), pages 59-79.
    13. Jong-Hee Hahn & Jin-Hyuk Kim, 2012. "Monopoly R&D and Compatibility Decisions in Network Industries," Working papers 2012rwp-43, Yonsei University, Yonsei Economics Research Institute.
    14. Crown, Daniel & Faggian, Alessandra & Corcoran, Jonathan, 2020. "Foreign-Born graduates and innovation: Evidence from an Australian skilled visa program✰,✰✰,★,★★," Research Policy, Elsevier, vol. 49(9).
    15. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    16. Croce, M.M. & Nguyen, Thien T. & Raymond, S. & Schmid, L., 2019. "Government debt and the returns to innovation," Journal of Financial Economics, Elsevier, vol. 132(3), pages 205-225.
    17. Panayotis Dessyllas & Alan Hughes, 2005. "R&D and Patenting Activity and the Propensity to Acquire in High Technology Industries," Industrial Organization 0507008, University Library of Munich, Germany.
    18. Lederman, Daniel & Saenz, Laura, 2005. "Innovation and development around the world, 1960-2000," Policy Research Working Paper Series 3774, The World Bank.
    19. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    20. Josh Lerner, 2002. "Where Does State Street Lead? A First Look at Finance Patents, 1971 to 2000," Journal of Finance, American Finance Association, vol. 57(2), pages 901-930, April.

    More about this item

    Keywords

    Planned Obsolescence; Innovation; Plant Breeding;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:kngedp:2000_008. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrea Ingianni (email available below). General contact details of provider: https://edirc.repec.org/data/sekinuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.