EconPapers    
Economics at your fingertips  
 

Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry

Miguel Carriquiry and Bruce Babcock

American Journal of Agricultural Economics, 2007, vol. 89, issue 1, 12-23

Abstract: Many food traits desired by consumers are costly to provide and difficult to verify. A complicating factor is that delivered quality can only be affected stochastically by producers and imperfectly observed by consumers. Markets for these goods will emerge only if supplying firms can be trusted. We develop a repeated purchases model to explore how quality discoverability, market structure, nature of reputations, market premiums, and discount factors drive firm choice about the stringency of quality assurance systems designed to gain consumer trust. Reputation protection is key incentive for firms to invest in high-quality goods and quality assurance systems. Copyright 2007, Oxford University Press.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1467-8276.2007.00959.x (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry (2007) Downloads
Working Paper: Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry (2005) Downloads
Working Paper: Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry (2004) Downloads
Working Paper: Reputations, Market Structure, and the Choice of Quality Assurance Systems in the Food Industry (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:89:y:2007:i:1:p:12-23

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2025-03-19
Handle: RePEc:oup:ajagec:v:89:y:2007:i:1:p:12-23