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Leadership and the Provision of Safe Food
Authors:David A Hennessy  Jutta Roosen  & John A Miranowski
Institution:Department of Economics, Iowa State University,;Unit of Agricultural Economics, University of Louvain
Abstract:Modern food production typically involves many interacting stages and two or more decision makers. There is reason to believe that inputs in determining quality likely complement. And it is not possible to regulate many of these inputs. In a food production system possessing these characteristics, we show that leadership by one or more firms through communicating actions may be used as a mechanism to increase overall food quality. As there may be no private incentive to lead, there may be strategic merit in assigning liability through legislation. We also suggest the possibility that genetics are leadership instruments in hog production systems.
Keywords:incentive structures  leadership  noncontractible  regulation  safety  systemic risk
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