Agricultural Production Clubs: Viability and Welfare Implications

Simple item page
dc.contributor.author Langinier, Corinne
dc.contributor.author Babcock, Bruce
dc.contributor.author Babcock, Bruce
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2018-02-16T15:02:11.000
dc.date.accessioned 2020-06-30T01:04:55Z
dc.date.available 2020-06-30T01:04:55Z
dc.date.embargo 2015-06-18
dc.date.issued 2006-08-01
dc.description.abstract <p>Consumers are in general less informed than producers about the quality of agricultural goods. To reduce he information gap, consumers can rely on standards (e.g., certification) that ensure quality and origin of the goods. These costly standards can be adopted by a group of producers of high-quality goods. We study the formation of such a group that we model as a club. We first investigate under what circumstances a club of a given size is desirable for producers, and for society. We then analyze the optimal size of the club when there exists a direct barrier to entry, and when there is no barrier.</p> <p>We find that for intermediate values of certification costs, the industry and a club of a given size of certified producers have divergent incentives. Furthermore, if barriers to entry are allowed, an optimal size of club exists, which allows some revelation of information. In the absence of barrier to entry, it is less likely that a club will emerge.</p>
dc.identifier archive/lib.dr.iastate.edu/card_workingpapers/449/
dc.identifier.articleid 1450
dc.identifier.contextkey 7236751
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath card_workingpapers/449
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/12797
dc.source.bitstream archive/lib.dr.iastate.edu/card_workingpapers/449/06wp431.pdf|||Sat Jan 15 00:19:23 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Industrial Organization
dc.subject.keywords Asymmetric information
dc.subject.keywords certification
dc.subject.keywords clubs
dc.subject.keywords quality
dc.title Agricultural Production Clubs: Viability and Welfare Implications
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication be977ffd-4ef3-4f33-a854-9db833e957f4
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
File
Original bundle
Now showing 1 - 1 of 1
Name:
06wp431.pdf
Size:
326.02 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Publications