2008
DOI: 10.2139/ssrn.1328101
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Traceability, Moral Hazard, and Food Safety

Abstract: Abstract-Errors in traceability can significantly impact the moral hazard associated with producing safe food. The effect of moral hazard depends on the proportion of unsafe food costs that can be allocated to the responsible producer, which depends on the efficiency of the traceability system. In this paper, we develop a model that identifies the minimum level of traceability needed to mitigate moral hazard and motivate suppliers to produce safe food. Regulators and consumer can use the results of this resear… Show more

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Cited by 7 publications
(11 citation statements)
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“…To avoid ambiguity in this paper we use the terms textile manufacturer and retailer. The model assumes three components of the supply chain, namely textile manufacturer, retailer, and customer, which is similar to that of used in the literature (e.g., [3,16,17,28]). The textile manufacturer serves the retailer and the retailer serves the end-use customer.…”
Section: Model Frameworkmentioning
confidence: 99%
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“…To avoid ambiguity in this paper we use the terms textile manufacturer and retailer. The model assumes three components of the supply chain, namely textile manufacturer, retailer, and customer, which is similar to that of used in the literature (e.g., [3,16,17,28]). The textile manufacturer serves the retailer and the retailer serves the end-use customer.…”
Section: Model Frameworkmentioning
confidence: 99%
“…More recently, increasing attention has been paid to traceability-based ex-post quality inspection techniques [3,16,17]. Traceability-based ex-post inspection extends the quality inspection perspective beyond the point of supply transaction and any quality-related issue can be traced back at any stage of the product lifecycle using the traceability information.…”
Section: Introductionmentioning
confidence: 99%
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“…They also suggest that it is impossible to have full traceability in food, regardless of mandatory or voluntary systems, and that choices have to be made on which attributes will be traceable. Starbird and Amanor-Boadu (2004) use a principal-agent model approach to analyze the implications of introducing traceability in a food supply chain where there is an inspection protocol. The producer is the agent and knows how safe the product is; the processor (the principal) does not know the quality and safety of the product.…”
Section: Operations Research and Economic Approaches To Traceability mentioning
confidence: 99%
“…Traceability is an information management tool and its effectiveness and efficiency may be affected by information asymmetries and imperfections. As in Starbird and Amanor-Boadu (2004), we use a principal-agent model, but in our case we analyze traceability as an endogenous variable.…”
Section: Operations Research and Economic Approaches To Traceability mentioning
confidence: 99%