Genetic contamination of traditional productsInternational Review of Economics and Finance
Publication VersionSubmitted Manuscript
AbstractCross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.
Copyright OwnerElsevier Inc.
Citation InformationE. Kwan Choi. "Genetic contamination of traditional products" International Review of Economics and Finance Vol. 27 (2013) p. 291 - 297
Available at: http://works.bepress.com/ekwan-choi/20/