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Journal articles

Joint private safety standards and vertical relation ships in food retailing

Abstract : In recent years, it has become common for downstream firms to impose Joint Private Standards (JPSs) on upstream producers. In this paper, we present an original model of a vertical relationship, explaining the incentives for and the effects of such JPSs with an example concerning food safety. The risk of a food crisis is endogenously determined. Using the concept of cartel stability (d’Aspremont et al., 1983), it is shown that liability rules are crucial for JPSs to emerge, that a JPS can become a minimum quality standard, and that a more stringent JPS does not necessarily reduce the market risk.
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Submitted on : Thursday, May 28, 2020 - 6:32:10 PM
Last modification on : Wednesday, January 26, 2022 - 9:21:03 AM

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Eric Giraud-Heraud, Abdelhakim Hammoudi, Ruben Hoffmann, Louis Georges Soler. Joint private safety standards and vertical relation ships in food retailing. Journal of Economics and Management Strategy, Wiley, 2012, 21 (1), pp.179-212. ⟨10.1111/j.1530-9134.2011.00320.x⟩. ⟨hal-02642600⟩

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