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Article
Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products
American Journal of Agricultural Economics
  • Harvey Lapan, Iowa State University
  • Giancarlo Moschini, Iowa State University
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
8-1-2007
DOI
10.1111/j.1467-8276.2007.01002.x
Abstract
We relate the labeling of genetically modified (GM) products to the theory of grading and minimum quality standards. The model represents three stages in the supply chain, assumes a vertical product differentiation framework, allows for the accidental commingling of non-GM products, and treats regulation as a purity threshold for non-GM products. We find that a non-GM purity level that is too strict leads to the disappearance of the non-GM product, and that some quality standard benefits farmers. Indeed, the standard that is optimal from the perspective of producers is stricter than what is optimal for consumers and for societal welfare.
Comments

This is a working paper of an article from American Journal of Agricultural Economics 89 (2007): 769, doi: 10.1111/j.1467-8276.2007.01002.x.

Citation Information
Harvey Lapan and Giancarlo Moschini. "Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products" American Journal of Agricultural Economics Vol. 89 Iss. 3 (2007) p. 769 - 783
Available at: http://works.bepress.com/giancarlo-moschini/56/