Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2013

Journal or Book Title

International Review of Economics and Finance

Volume

27

First Page or Article ID Number

291

Last Page

297

DOI

10.1016/j.iref.2012.10.006

Abstract

Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.

Comments

NOTICE: this is the author’s version of a work that was accepted for publication in International Review of Economics and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Review of Economics and Finance 27 (2013), doi: 10.1016/j.iref.2012.10.006.

Copyright Owner

Elsevier Inc.

Language

en

File Format

application/pdf

Published Version

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