AgEcon Search

AgEcon Search >
       European Association of Agricultural Economists >
          105th Seminar, March 8-10, 2007, Bologna, Italy >

Please use this identifier to cite or link to this item: http://purl.umn.edu/7849

Title: Agrifood safety standards, market power and consumer misperceptions
Authors: Giraud-Heraud, Eric
Grazia, Cristina
Hammoudi, Abdelhakim
Keywords: food safety standards
market power
risk misperception
Issue Date: 2007
Series/Report no.: Contributed paper 23
Abstract: This paper analyzes how the implementation of a food safety standard affects firms’ strategic behaviour within the context of a food chain. We provide a formal analysis, which considers that the sanitary risk results from a strong heterogeneity of upstream production conditions and the final demand depends on consumers’ risk estimations (given that consumers may underestimate or, conversely, overestimate the sanitary risk). We show how downstream (processing or retailing) firms may be prompted to play a positive role with respect to food safety, either by selecting only the safest upstream producers or by encouraging the improvement of suppliers’ production conditions. When the degree of consumers’ risk misperception is relatively low, then a downstream firm may adopt the latter strategy and increase the marketed quantities as the food safety standard is improved. However, we show that the actual contamination risk is not necessarily decreasing in the level of the food safety standard.
URI: http://purl.umn.edu/7849
Institution/Association: European Association of Agricultural Economists>105th Seminar, March 8-10, 2007, Bologna, Italy
Total Pages: 18
Language: English
From Page: 351
To Page: 368
Collections:105th Seminar, March 8-10, 2007, Bologna, Italy

Files in This Item:

File SizeFormat
cp070023.pdf152KbPDFView/Open
Recommend this item

All items in AgEcon Search are protected by copyright.

 

 

Brought to you by the University of Minnesota Department of Applied Economics and the University of Minnesota Libraries with cooperation from the Agricultural and Applied Economics Association.

All papers are in Acrobat (.pdf) format. Get Adobe Reader

Contact Us

Powered by: