Market Potential and Economic Impacts of Food Nanotechnology Innovations
Tran Van,
Amalia Yiannaka and
Konstantinos Giannakas ()
Additional contact information
Tran Van: University of Massachusetts Amherst
Journal of the Knowledge Economy, 2019, vol. 10, issue 2, No 15, 776-811
Abstract:
Abstract The study develops an analytical framework of heterogeneous consumers and imperfectly competitive suppliers to (a) examine the determinants of the market acceptance of a food nanotechnology innovation; (b) identify the exact conditions under which the innovation will be ineffective, nondrastic, and drastic; and (c) determine the effects of this technology on the interest groups involved. Analytical results show that high consumer valuations of the enhanced attributes enabled by nanotechnology can lead to consumer acceptance of nanofoods even when consumers are more averse to nanotechnology than conventional food technology. In most cases, the introduction of food nanotechnology leads to reduced quantities and prices of conventional and organic products, which result, in turn, in losses for nonadopting suppliers and benefits for all consumers. The greater is the degree of market power of food suppliers, the greater the reduction in the prices of conventional and organic products and the greater the losses of these suppliers due to the introduction of the food nanotechnology innovation. While all consumers can benefit from the introduction of nanofood innovations, the effect of these innovations on consumer welfare is asymmetric, with the group of consumers benefiting the most being case-specific and dependent on the relative quality ranking of the nanofoods and their conventional counterparts.
Keywords: Food nanotechnology; Coexistence; Ineffective; nondrastic; and drastic innovations; Consumer heterogeneity; Consumer and producer welfare (search for similar items in EconPapers)
JEL-codes: L13 Q13 Q18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s13132-017-0494-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
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:spr:jknowl:v:10:y:2019:i:2:d:10.1007_s13132-017-0494-9
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132
DOI: 10.1007/s13132-017-0494-9
Access Statistics for this article
Journal of the Knowledge Economy is currently edited by Elias G. Carayannis
More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().