International trade in genetically modified products

Eun Choi

International Review of Economics & Finance, 2010, vol. 19, issue 3, 383-391

Abstract: This paper investigates competition between two markets that sell close substitutes: a traditional product and a genetically modified (GM) product. Tightening an import quota on the GM product raises the prices of both goods and hurts consumers. Two scenarios are considered under free trade: Cournot-Nash equilibrium and Stackelberg equilibrium. A Stackelberg type monopolist produces more, and the competitive traditional firms produce less, than in Cournot-Nash equilibrium. In the long run, an import ban on the GM product does not help competitive producers of the genetically modified organism (GMO)-free products but benefits only the landowners in Europe.

Keywords: Genetically; modified; products; Import; ban; Landowners (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)

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Working Paper: International Trade in Genetically Modified Products (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:19:y:2010:i:3:p:383-391

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