The Strategic Use of Private Quality Standards in Food Supply Chains

Vanessa von Schlippenbach and Isabel Teichmann

No 114519, 51st Annual Conference, Halle, Germany, September 28-30, 2011 from German Association of Agricultural Economists (GEWISOLA)

Abstract: This paper highlights the strategic role retailers private quality standards play in food supply chains. Considering two symmetric downstream firms that are exclusively supplied by a finite number of upstream firms and letting the upstream firms decide which retailer to supply, we show that there exist two asymmetric equilibria in the downstream firms quality requirements. The asymmetry is driven by both an increase in the retailers buyer power and the retailers competition for suppliers. The use of private quality standards induces a decrease in social welfare, which can be softened by the implementation of a public minimum quality standard.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Food Consumption/Nutrition/Food Safety; Industrial Organization (search for similar items in EconPapers)
Pages: 14
Date: 2011
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Strategic Use of Private Quality Standards in Food Supply Chains (2012)
Working Paper: The Strategic Use of Private Quality Standards in Food Supply Chains (2011)
Working Paper: The Strategic Use of Private Quality Standards in Food Supply Chains (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi11:114519

DOI: 10.22004/ag.econ.114519

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