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Abstract

Since most of the recent agricultural biotechnology innovations have been developed by private companies, the central focus of societal interest is on the distribution of the gains from these technologies among all stakeholders. In a partial equilibrium model, assuming perfect corporate pricing strategies given the heterogeneous population of potential adopters, we model the worldwide introduction of GM sugar beet. The introduction is modelled under both the old and new CMO for sugar in the EU. We see GM sugar beet could bring great benefits to both consumers in the world and sugar beet producers even when the innovation is protected by intellectual property rights and the innovator uses his restricted monopoly to the full extend.

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