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A Principal-Agent Model for Investigating Traceability Systems Incentives on Food Safety AgEcon
Resende Filho, Moises de Andrade.
This article investigates the effects of contingent payments and a traceability system's expected traceback rate of success on the food safety effort exerted by raw material suppliers. This sheds light on when contingent payments and the reliability of a traceability system are substitutes and complements to each other in terms of inducing raw material suppliers to exert higher food safety effort. In addition, the effect of higher penalties and costs of food safety crisis on the effort to be induced by buyers (principal) on suppliers (agents) is investigated under a symmetric information setting. Finally, the asymmetric information setting is formalized as a principal-agent model and left to be explored in a future work. Some numerical exercises are...
Tipo: Conference Paper or Presentation Palavras-chave: Information Asymmetry; Identity Preservation; Food Traceability; Supply Chain Management.; Food Consumption/Nutrition/Food Safety; D82; D86; C61.
Ano: 2007 URL: http://purl.umn.edu/7897
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