IDENTITY PRESERVATION AND FALSE LABELING IN THE FOOD SUPPLY CHAIN

The paper addresses two issues pertaining to the market differentiation between non-genetically modified (non-GM) and genetically modified (GM) food varieties. First, a cost-efficiency explanation is given for the discrepancy between the observed shares of identity preserved non-GM variety and the total supply of the variety. Second, the analysis shows that when products can be falsely labeled as non-GM, the share of false labeling depends on the level of identity preservation. In this context, the analysis demonstrates that the share of falsely labeled supply can increase in response to harsher fines.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/18614
Total Pages:
30
Series Statement:
CARD Working Paper 02-WP 295




 Record created 2017-04-01, last modified 2017-08-24

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