@article{Maarten:212711, recid = {212711}, author = {Maarten, J. Punt and Wesseler, Justus}, title = {The Formation of GM-free and GM Coasean clubs}, address = {2015}, number = {1008-2016-80415}, pages = {49}, year = {2015}, abstract = {The unintended presence of traces of genetically modified (GM) crops in the harvests of conventional crops plays a prominent role in the debate over the coexistence of GM and conventional crops. One way to address the issue is the formation of GM-free or GM-only clubs. We model the decisions of individual farmers to cultivate either GM or conventional crops and combine this with a game theoretic model of club formation to investigate the feasibility of clubs. We consider two liability regimes: GM farmers are liable or they are not. We also consider two benchmarks: Nash equilibrium without negotiations and the efficient configuration as well as partial cooperation through Coasean clubs. We find that relatively large clubs can form but they are not always necessary.}, url = {http://ageconsearch.umn.edu/record/212711}, doi = {https://doi.org/10.22004/ag.econ.212711}, }