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Abstract

This paper analyzes the strategic effects of national regulatory decisions on labeling of GM products and identifies the determinants of the noncooperative Nash equilibrium labeling regimes in a small number of producing countries that have adopted the GM technology. Analytical results show that the equilibrium labeling regimes depend on (i) the distribution of consumer preferences and the level of consumer aversion to GM products; (ii) the segregation and labeling costs in these countries; (iii) the relative productive efficiency and the cost effectiveness of the GM technology; (iv) the structure of the trading sector; (v) the market power of the life science companies; and (vi) the strength of intellectual property rights in these countries.

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