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Who Pays the Costs of Non‐GMO Segregation and Identity Preservation?
Author(s) -
Desquilbet Marion,
Bullock David S.
Publication year - 2009
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2009.01262.x
Subject(s) - hatred , monopolistic competition , business , welfare , industrial organization , economics , microeconomics , monopoly , market economy , law , political science , politics
Our aim is to explore who pays the costs and who reaps the benefits of maintaining a dual‐market system of genetically modified organisms (GMOs) and non‐GMOs. We analyze the welfare effects of the introduction of consumer “hatred” given GMO technology and the introduction of GMO technology given hatred. Making alternative assumptions of competitive and then monopolistic supply, we recognize that identity preservation (IP) of non‐GMOs creates costs for IP and non‐IP producers. We model these costs as depending on the sizes of the two supply channels.