Moral hazard, inspection policy, and food safety

American Journal of Agricultural Economics

Volumn 87, Issue 1, 2005, Pages 15-27

  Starbird, S Andrew ^a,b  

^a SANTA CLARA UNIVERSITY   (United States)

^b SCU   (United States)

Author keywords

Food safety; Imperfect information; Moral hazard; Sampling inspection; Supply chain

Indexed keywords

FOOD INDUSTRY; FOOD PRODUCTION; FOOD SAFETY; SAMPLING;

NORTH AMERICA; UNITED STATES; WESTERN HEMISPHERE; WORLD;

EID: 13944255128     PISSN: 00029092     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.0002-9092.2005.00698.x     Document Type: Article

References (46)

1. Akerlof, G.A. "The Market for Lemons: Qualitative Uncertainty and the Market Mechanism." The Quarterly Journal of Economics 84(1970):488-500.
2. Antle, J.M. Choice and Efficiency in Food Safety Policy. Washington DC: The AEI Press, 1995.
3. Baker, G.A., and T.A. Burnham. "Consumer Response to Genetically Modified Foods: Market Segment Analysis and Implications for Producers and Policy Makers." Journal of Agricultural and Resource Economics 26(2001).
4. Bisin, A., and P. Gottardi. "Competitive Equilibria with Asymmetric Information." Journal of Economic Theory 87(1999):1-48.
5. Bordignon, M., and S. Brusco. "Optimal Secession Rules." European Economic Review 45(2001):1811-34.
6. Buzby, J.C., P.D. Frenzen, and B. Rasco. Product Liability and Microbial Foodborne Illnesses. Washington, DC: U.S. Department of Agriculture, ERS Economics Report No. 799, April 2001.
7. Corbett, C.J. "Stochastic Inventory Systems in a Supply Chain with Asymmetric Information: Cycle Stocks, Safety Stocks, and Consignment Stock." Operations Research 49(2001):487-500.
8. Crespi, J.M., and S. Marette. "How Should Food Safety Certification be Financed?" American Journal of Agricultural Economics 83(2001):852-61.
9. Durbin, E.P. "Pricing Policies Contingent on Observed Product Quality." Technometrics 8(1966):123-34.
10. Elbasha, E.H., and T.L. Riggs, "The Effects of Information on Producer and Consumer Incentives to Undertake Food Safety Efforts: A Theoretical Model and Policy Implications." Agribusiness: An International Journal 19(2003):29-42.
11. Fox, J.A., and D.A. Hennessy, "Cost-effective Hazard Control in Food Handling." American Journal of Agricultural Economics 81(1999):359-72.
12. Golan, E., F. Kuchler, and L. Mitchell. "Economics of Food Labeling." Journal of Consumer Policy 24(2001):117-84.
13. Goodhue, R.E. "Broiler Production Contracts as a Multi-Agent Problem: Common Risk, Incentives and Heterogeneity." American Journal of Agricultural Economics 82(2000):606-22.
14. Grossman, S.J. "The Informational Role of Guaranties and Private Disclosure about Product Quality." Journal of Law and Economics 24(1981):461-83.
15. Grossman, S.J., and O.D. Hart. "An Analysis of the Principal-Agent Problem." Econometrica 51(1983):324-40.
16. Harris, M., and A. Raviv. "Optimal Incentive Contracts with Imperfect Information." The Journal of Economic Theory 20(1979):231-59.
17. Hennessy, D.A., J. Roosen, and J.A. Miranowski. "Leadership and the Provision of Safe Food." American Journal of Agricultural Economics 83(2001):862-74.
18. Henson, S., and G. Holt. "Quality Assurance Management in Small Meat Manufacturers." Food Control 11(2000):319-26.
19. Hill, I.D. "The Economic Incentive Provided by Sampling Inspection." Applied Statistics 9(1960):69-81.
20. Holmstrom, B. "Moral Hazard and Observability." Bell Journal of Economics 10(1979):74-91.
21. Hueth, B., and E. Ligon. "Producer Price Risk and Quality Measurement." American Journal of Agricultural Economics 81(1999):512-24.
22. Jensen, H., L. Unnevehr, and M. Gomez. "The Costs of Improving Food Safety in the Meat Sector." Journal of Agricultural and Applied Economics 30(1998):83-94.
23. Lloyd, T., S. McCorriston, C.W. Morgan, and A.J. Rayner. "The Impact of Food Scares on Price Adjustment in the UK Beef Market." Agricultural Economics 25(2001):347-57.
24. Loureiro, M.L., J.J. McCluskey, and R.C. Mittelhammer. "Assessing Consumers Preferences for Organic, Eco-labeled and Regular Apples." Journal of Agricultural & Resource Economics 26(2001):404-16.
25. Macho-Stadler, I., and J.D. Perez-Castrillo. An Introduction to the Eonomics of Information: Incentives and Contracts, 2nd ed. New York: Oxford University Press, 2001.
26. Malcolm, S., C. Narrod, T. Roberts, and M. Ollinger. "Evaluating the Economic Effectiveness of Pathogen Reduction Technologies in Cattle Slaughter Plants." Agribusiness: An International Journal 20(2004):109-23.
27. Milgrom, P., and J. Roberts. "Limit Pricing and Entry under Incomplete Information: An Equilibrium Analysis." Econometrica 50(1982):443-60.
28. Mood, A.M. "On the Dependence of Sampling Inspection Plans upon Population Distributions." Annals of Mathematical Statistics 14(1943):415-25.
29. Pastor, M., and J. Sandonis. "Research Joint Ventures vs. Cross Licensing Agreements: An Agency Approach." International Journal of Industrial Organization 20(2002):215-49.
30. Rey, P., and B. Salanie. "On the Value of Commitment with Asymmetric Information." Econometrica 64(1996):1395-1415.
31. Rothschild, M., and J.E. Stiglitz. "Equilibrium in Competitive Insurance Markets: An Essay in the Economics of Imperfect Information." Quarterly Journal of Economics 90(1976):629-50.
32. Satin, V., and N.H. Hooker. "Stock Market Reaction to Food Recalls." Review of Agricultural Economics 23(2001):33-46.
33. Schilling, E.G. Acceptance Sampling in Quality Control. New York: Marcel Dekker, 1982.
34. Sinha, U.B. "International Joint Venture, Licensing and Buy-out under Asymmetric Information." Journal of Development Economics 66(2001):127-51.
35. Spence, M. "Job Market Signaling." The Quarterly Journal of Economics 87(1973):355-74.
36. Sporleder, T.L., and P.D. Goldsmith. "Alternative Firm Strategies for Signaling Quality in the Food System." Canadian Journal of Agricultural Economics 49(2001):591-604.
37. Starbird, S.A. "The Effect of Acceptance Sampling and Risk Aversion on the Quality Delivered by Suppliers." Journal of the Operational Research Society 45(1994):309-20.
38. Starbird, S.A. "Acceptance Sampling, Imperfect Production, and the Optimality of Zero Defects." Naval Research Logistics Quarterly 44(1997):515-30.
39. Starbird, S.A. "Designing Food Safety Regulations: The Effect of Inspection Policy and Penalties for Noncompliance on Food Processor Behavior." Journal of Agricultural and Resource Economics 25(2000):616-35.
40. Stephens, K.S. Handbook of Applied Acceptance Sampling: Plans, Procedures, and Principles. Milwaukee: ASQ Quality Press, 2001.
41. Stiglitz, J.E., and A. Weiss. "Credit Rationing in Markets with Imperfect Information." American Economic Review 71(1981):393-410.
42. Thomsen, M.R., and A.M. McKenzie. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls." American Journal of Agricultural Economics 83(2001):526-38.
43. U.S. Department of Agriculture. "Pathogen Reduction; Hazard Analysis and Critical Control Point Systems; Final Rule." Federal Register 61(1996):38805-989.
44. von Ungern-Sternberg, T., and C.C. von Weizsacker. "The Supply of Quality on a Market for 'Experience Goods'." Journal of Industrial Economics 33(1985):531-43.
45. Weiss, M.D. "Information Issues for Principal and Agents in the 'Market' for Food Safety and Nutrition." In J.A. Caswell, ed. Valuing Food Safety and Nutrition. Boulder: Westview Press, 1995, pp. 69-79.
46. Whittle, P. "Optimum Preventive Sampling." Operations Research 2(1954):197-203.