Traceability, Moral Hazard, and Food Safety

10 Pages Posted: 16 Jan 2009

See all articles by S. Andrew Starbird

S. Andrew Starbird

Santa Clara University - Department of Information Systems & Analytics

Vincent Amanor-Boadu

Kansas State University - Department of Agricultural Economics

Date Written: August 25, 2008

Abstract

Errors in traceability can significantly impact the moral hazard associated with producing safe food. The effect of moral hazard depends on the proportion of unsafe food costs that can be allocated to the responsible producer, which depends on the efficiency of the traceability system. In this paper, we develop a model that identifies the minimum level of traceability needed to mitigate moral hazard and motivate suppliers to produce safe food. Regulators and consumer can use the results of this research to design regulations and contracts that mitigate moral hazard and motivate producers to deliver safe food.

Keywords: Food safety, traceability, moral hazard

JEL Classification: D82, L15, Q12

Suggested Citation

Starbird, Sterling Andrew and Amanor-Boadu, Vincent, Traceability, Moral Hazard, and Food Safety (August 25, 2008). Available at SSRN: https://ssrn.com/abstract=1328101 or http://dx.doi.org/10.2139/ssrn.1328101

Sterling Andrew Starbird (Contact Author)

Santa Clara University - Department of Information Systems & Analytics ( email )

500 El Camino Real
Santa Clara, CA 95053
United States

HOME PAGE: http://omis.scu.edu/

Vincent Amanor-Boadu

Kansas State University - Department of Agricultural Economics ( email )

Manhatten, KS 66506-4001
United States

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