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Bouamra-Mechemache, Zohra
and Jianyu, Yu
(2013)
Production Standards, Competition and Vertical Relationship.
TSE Working Paper, n. 13-417, Toulouse
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Abstract
This paper investigates the collective choice of production standards by farmer and pro- cessor groups within a vertical food supply chain, taking into account their competition behaviors. In a context in which raising standards cannot translate into a direct price premium to consumers, we develop a general model to analyze the strategic motive of us- ing standards to limit supply and shift rents among farmers and processors in the vertical chain. We find that such a motive depends on farmers’ cost structure, final demand char- acteristics, and processors’ competition patterns. In particular, farmers prefer a stringent standard when the standard involves creating greater diseconomies of scale in production and when the demand for the final product is inelastic. However, processors only prefer a stringent standard in the presence of oligopsony competition.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | April 2013 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Production standards, Vertical relationship, Imperfect competition, Technology choice |
| JEL Classification: | L13 - Oligopoly and Other Imperfect Markets Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 30 Jun 2016 12:43 |
| Last Modified: | 02 Apr 2021 15:53 |
| OAI Identifier: | oai:tse-fr.eu:27403 |
| URI: | https://publications.ut-capitole.fr/id/eprint/21614 |
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