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Information asymmetry and the role of traceability systems
Author(s) -
Hobbs Jill E.
Publication year - 2004
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.20020
Subject(s) - traceability , ex ante , context (archaeology) , information asymmetry , computer science , quality (philosophy) , incentive , information quality , risk analysis (engineering) , information system , business , economics , microeconomics , engineering , paleontology , philosophy , software engineering , epistemology , biology , electrical engineering , macroeconomics
The role of food traceability systems in resolving information asymmetry is explored. Three functions of traceability systems are identified: ex post reactive systems that allow the traceback of affected products in the event of a contamination problem so as to minimize social costs, ex post systems that facilitate the allocation of liability, and information systems that provide ex ante quality verification. A taxonomy of traceability systems illustrates the multidimensional nature of the information problems related to food safety and food quality. A model of ex ante quality verification and ex post traceability systems is used to demonstrate the different functions and incentives of a traceability system. Finally, examples of private sector and regulatory traceability initiatives are discussed within the context of the ex post and ex ante models developed in the paper. [EconLit citations: Q130; Q180; L150.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 397–415, 2004.