Emergence of Organic Farming under Imperfect Competition: Economic Conditions and Policy Instruments
Jaeck Mélanie (),
Robert Lifran and
Additional contact information
Jaeck Mélanie: Montpellier Business School – MRM, Montpellier, France
Journal of Agricultural & Food Industrial Organization, 2014, vol. 12, issue 1, 14
This paper explores the economic conditions for the viability of organic farming in a context of imperfect competition. While most research dealing with this issue has adopted an empirical approach, we propose a theoretical approach. Farmers have a choice between two technologies, the conventional one using two complementary inputs, chemicals and seeds, and the organic one only requiring organic seeds. The upstream markets are oligopolistic and the firms adopt Cournot behavior. The game is solved backward. The equilibrium distribution of the farmers between both sectors is obtained by a free-entry condition. Since multiple equilibria could exist, including the non-emergence of organic farming, we spell out viability conditions for organic farming. Then, using an “infant industry” argument, we propose several public policy instruments able to support the development of organic farming and assess their relative efficiency. Results could be useful to assess the conditions of emergence and viability of agricultural innovations in analogous contexts.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
For access to full text, subscription to the journal or payment for the individual article is required.
Working Paper: Emergence of organic farming under imperfect competition: economic conditions and policy instruments (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:bjafio:v:12:y:2014:i:1:p:14:n:8
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Agricultural & Food Industrial Organization is currently edited by Azzeddine Azzam
More articles in Journal of Agricultural & Food Industrial Organization from De Gruyter
Bibliographic data for series maintained by Peter Golla ().