Identity Preservation and False Labeling in the Food Supply Chain
In this paper I address two issues pertaining to the market differentiation between non-genetically modified (non-GM) and genetically modified (GM) food varieties. First, I provide a cost-efficiency explanation of the discrepancy between the observed shares of identity preserved non-GM variety and the total supply of the variety. Second, I show that when products can be falsely labeled as non-GM, the share of false labeling depends on the level of identity preservation. In this context, I demonstrate that the share of falsely labeled supply can increase in response to harsher fines.
Year of publication: |
2002-02
|
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Authors: | Saak, Alexander E. |
Institutions: | Food and Agricultural Policy Research Institute (FAPRI), Iowa State University |
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