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Abstract
Since most of the recent agricultural
biotechnology innovations have been developed by
private companies, the central focus of societal interest
is on the distribution of the gains from these
technologies among all stakeholders. In a partial
equilibrium model, assuming perfect corporate pricing
strategies given the heterogeneous population of
potential adopters, we model the worldwide introduction
of GM sugar beet. The introduction is modelled under
both the old and new CMO for sugar in the EU. We see
GM sugar beet could bring great benefits to both
consumers in the world and sugar beet producers even
when the innovation is protected by intellectual property
rights and the innovator uses his restricted monopoly to
the full extend.