Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products

15 Pages Posted: 24 Apr 2020

See all articles by Harvey Lapan

Harvey Lapan

Iowa State University

GianCarlo Moschini

Iowa State University - Department of Economics

Date Written: August 2007

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.

Keywords: biotechnology, food labeling, grading, identity preservation, minimum quality standards, regulation, uncertainty

Suggested Citation

Lapan, Harvey and Moschini, GianCarlo, Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products (August 2007). American Journal of Agricultural Economics, Vol. 89, Issue 3, pp. 769-783, 2007, Available at SSRN: https://ssrn.com/abstract=3583749 or http://dx.doi.org/10.1111/j.1467-8276.2007.01002.x

Harvey Lapan (Contact Author)

Iowa State University

GianCarlo Moschini

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
62
PlumX Metrics