Coordination and information sharing about pest resistance

Stéphane Lemarié () and Philippe Marcoul ()
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Stéphane Lemarié: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: We develop a dynamic oligopolistic Cournot model of a pesticide market where resistance to pesticides can develop. We first study firms' incentives for resistance management through pricing and we distinguish two cases of demand for pesticides; one where users are able to coordinate their pesticide use and one where they are not. We show that users benefit from coordination, but that this gain is at the expense of firms facing a lower demand. When firms are allowed to obtain scientific information on the likelihood of pest resistance and, possibly, to share this information among themselves, we find that they have an incentive to acquire information and to share it with competitors. They also benefit from transmitting this information to users if the latter are coordinated. In the case of uncoordinated users, transmission of information to users is not necessarily profitable for firms if it favors their coordination. Finally, we discuss the policy implications for existing information sharing committees in the pesticide industry.

Keywords: Pesticide; Resistance management; Oligopoly; Information sharing; Common-pool resource (search for similar items in EconPapers)
Date: 2018-01
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Citations: View citations in EconPapers (3)

Published in Journal of Environmental Economics and Management, 2018, 87, pp.135 - 149. ⟨10.1016/j.jeem.2017.05.009⟩

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Journal Article: Coordination and information sharing about pest resistance (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01667500

DOI: 10.1016/j.jeem.2017.05.009

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