A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-Site Lesion Control in Fed Cattle

Posted: 3 Sep 2008

See all articles by Moises A Resende-Filho

Moises A Resende-Filho

Universidade de Brasília

Brian L. Buhr

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics

Date Written: 2008-01

Abstract

Traceability can link the identity of cattle feeders with retail beef cuts. The economic problem for the packer implementing traceability is to choose the level of investment in traceability and the level of incentive payments to cattle feeders so that cattle feeders will avoid production actions that can damage retail beef cuts. A case study of injection-site lesions in cattle is the basis for technical parameters to numerically solve this principal-agent problem. Results show that cattle feeders will give injections in sites preferred by the packer even with low rates of successful tracking and minimal incentives.

Suggested Citation

Resende-Filho, Moises A and Buhr, Brian L., A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-Site Lesion Control in Fed Cattle (2008-01). American Journal of Agricultural Economics, Vol. 90, Issue 4, pp. 1091-1102, November 2008. Available at SSRN: https://ssrn.com/abstract=1263049 or http://dx.doi.org/10.1111/j.1467-8276.2008.01150.x

Moises A Resende-Filho (Contact Author)

Universidade de Brasília ( email )

Departamento de Economia
Campus Universitário Darcy Ribeiro, ICC Norte, UnB
Brasília, DF 70919-970
Brazil

HOME PAGE: http://sites.google.com/site/rese0013/english

Brian L. Buhr

University of Minnesota - College of Agricultural, Food and Environmental Sciences - Department of Applied Economics ( email )

1994 Buford Avenue
St. Paul, MN 55108
United States

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