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Agrifood safety standards, market power and consumer misperceptions AgEcon
Giraud-Heraud, Eric; Grazia, Cristina; Hammoudi, Abdelhakim.
This paper analyzes how the implementation of a food safety standard affects firms’ strategic behaviour within the context of a food chain. We provide a formal analysis, which considers that the sanitary risk results from a strong heterogeneity of upstream production conditions and the final demand depends on consumers’ risk estimations (given that consumers may underestimate or, conversely, overestimate the sanitary risk). We show how downstream (processing or retailing) firms may be prompted to play a positive role with respect to food safety, either by selecting only the safest upstream producers or by encouraging the improvement of suppliers’ production conditions. When the degree of consumers’ risk misperception is relatively low, then a downstream...
Tipo: Conference Paper or Presentation Palavras-chave: Food safety standards; Market power; Risk misperception; Food Consumption/Nutrition/Food Safety.
Ano: 2007 URL: http://purl.umn.edu/7849
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