Small is Beautiful? Firm's Size, Prevention & Food Safety

Elodie Rouviere () and Raphael Soubeyran

No 123410, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: The European General Food Law of 2005 and the newly promulgated FDA Food Safety Modernization Act (FFSMA) of 2010 ask all food operators to implement preventive efforts. In this article, we explore the link between firm’s size and preventive efforts. We show two main results. First, when there is no cross-contamination, small firms will provide higher preventive efforts than large firms. When there is crosscontamination, the effort-size curve may have a "inverted-U" shape. From our results we can argue that when implementing or enforcing food safety regulations, public authorities should consider both firms size and food safety hazard.

Keywords: Agribusiness; Food Consumption/Nutrition/Food Safety; Industrial Organization; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 19
Date: 2012-05-14
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:123410

DOI: 10.22004/ag.econ.123410

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