Genetic Contamination of Traditional Products

Eun Choi

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.

Keywords: Genetic contamination; terminator genes (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-05-31
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Citations: View citations in EconPapers (1)

Published in International Review of Economics and Finance, June 2013, vol. 27 no. 1, pp. 291-297

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Journal Article: Genetic contamination of traditional products (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:37369

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