Production standards, competition and vertical relationship

Zohra Mechemache and Yu Jianyu ()
Additional contact information
Yu Jianyu: Research Institute of Economics and Management - Partenaires INRAE

Post-Print from HAL

Abstract: his paper investigates the collective choice of production standards by farmer and pro- cessor groups within a vertical food supply chain, taking into account their competition behaviors. In a context in which raising standards cannot translate into a direct price premium to consumers, we develop a general model to analyze the strategic motive of us- ing standards to limit supply and shift rents among farmers and processors in the vertical chain. We find that such a motive depends on farmers' cost structure, final demand char- acteristics, and processors' competition patterns. In particular, farmers prefer a stringent standard when the standard involves creating greater diseconomies of scale in production and when the demand for the final product is inelastic. However, processors only prefer a stringent standard in the presence of oligopsony competition.

Keywords: production standards; vertical relationship; imperfect competition; technology choice (search for similar items in EconPapers)
Date: 2013-03-21
References: Add references at CitEc
Citations:

Published in 134. EAAE Seminar : Labels on sustainability : an issue for consumers, producers, policy makers, and NGOs, European Association of Agricultural Economists (EAAE). INT., Mar 2013, Paris, France. pp.43

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Production standards, competition and vertical relationship (2016)
Working Paper: Production Standards, Competition and Vertical Relationship (2013)
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:hal:journl:hal-02746623

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().