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| Content Provider | AgEcon Search |
|---|---|
| Author | Furtan, William Hartley Gray, Richard S. Holzman, J.J. |
| Abstract | This study examines the optimal approval strategy for genetically modified (GM) wheat varieties in Canada and the United States. Without an affordable segregation system, the introduction of GM wheat will create a market for "lemons" that will result in the loss of important export markets. Using a differentiated product trade model for spring wheat, with endogenous technology pricing, a payoff matrix is generated for the possible approval outcomes. Results show that the existence of the market externality removes the first-mover advantage for wheat producers from the approval of the new GM wheat variety. There are large distributional effects; wheat producers lose economic surplus, while consumers and the biotech company gain economic surplus. With a larger domestic market, the United States is more likely to experience net gain in economic surplus from the introduction of GM wheat. |
| Related Links | https://ageconsearch.umn.edu/record/30778/files/30010012.pdf |
| Ending Page | 27 |
| Page Count | 16 |
| Starting Page | 12 |
| File Format | |
| ISSN | 10685502 |
| DOI | 10.22004/ag.econ.30778 |
| Journal | Journal of Agricultural and Resource Economics |
| Issue Number | 1 |
| Volume Number | 30 |
| Language | English |
| Publisher | Western Agricultural Economics Association (WAEA) |
| Publisher Date | 2005-01-01 |
| Access Restriction | Open |
| Subject Keyword | Applied Economics Agricultural Economics Agri-economic Open Access Database Research in Applied Economics Research in Agricultural Economics Higher Study On Agricultural Economics Higher Study On Applied Economics Agricultural Research Documents Agrarian Economy & Research Higher Study Agri-economics Research in Economics Agri-economic Open Access Repository Statistics in Agricultural Economics Biotechnology Market Externalities Non Cooperative Games Strategic Approval Decisions Trade Agricultural and Food Policy |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics, Econometrics and Finance |
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