Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products

dc.contributor.author Lapan, Harvey
dc.contributor.author Moschini, Giancarlo
dc.contributor.author Lapan, Harvey
dc.contributor.author Moschini, Giancarlo
dc.contributor.department Economics
dc.date 2018-02-17T22:17:58.000
dc.date.accessioned 2020-06-30T02:12:37Z
dc.date.available 2020-06-30T02:12:37Z
dc.date.embargo 2016-09-16
dc.date.issued 2006-03-01
dc.description.abstract <p>In this paper we relate the economics of labeling genetically modified (GM) products to the theory of grading and minimum quality standards. The model represents three stages in the supply chain (farm production, marketing handlers, and final users) and allows explicitly for the accidental co-mingling of non-GM products at the marketing stage. Regulation takes the form of a threshold level of purity for non-GM products. The paper also presents a novel demand specification for differentiated GM and non-GM products that is particularly useful in our stochastic framework. First, we find that if the threshold purity level for non-GM products is too strict, this necessarily leads to the disappearance of non-GM product from the market. Second, we show that some quality standard is in the interest of farmers as well. Indeed, we show that the standard that is optimal from the perspective of producers is actually stricter than what is optimal for consumers and for societal welfare. We conclude with comparative statics effects that illustrate the impact of the model’s parameters on market equilibrium and on the welfare- maximizing regulatory standard.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/215/
dc.identifier.articleid 1215
dc.identifier.contextkey 9130479
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/215
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22438
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/215/wp2006_Lapan_GradingMinimum.pdf|||Fri Jan 14 22:37:59 UTC 2022
dc.title Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication e64c5053-8f4a-483e-8454-77ceff5f3792
relation.isAuthorOfPublication 875efd32-d51f-480d-8d4b-3d87da3f2678
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
File
Original bundle
Now showing 1 - 1 of 1
Name:
wp2006_Lapan_GradingMinimum.pdf
Size:
249.48 KB
Format:
Adobe Portable Document Format
Description:
Collections