PLANTING DECISIONS AND UNCERTAIN CONSUMER ACCEPTANCE OF GENETICALLY MODIFIED CROP VARIETIES

Alexander Saak () and David Hennessy

No 20581, 2001 Annual meeting, August 5-8, Chicago, IL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: There exists much uncertainty about consumer attitudes towards genetically modified foods. If it happens that sufficient (insufficient) acres are planted under non-modified seed to meet post-harvest demand, then a price premium will not (will) emerge for the non-modified varieties. A non-linearity originates in the fact that a price premium may be supported. This non-linearity interacts with the extent of demand uncertainty to determine equilibrium varietal plantings and the probability that post-harvest varietal prices will differ. Also, as planting approaches signals will be received by growers about the nature of demand they will be planting into. We show how the non-linearity affects the order on the types of signals that risk-neutral growers will prefer to receive.

Keywords: Consumer/Household Economics; Crop Production/Industries (search for similar items in EconPapers)
Pages: 35
Date: 2001
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties (2002)
Working Paper: Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea01:20581

DOI: 10.22004/ag.econ.20581

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