Incentives to Reduce Crop Trait Durability |
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Authors: | Stefan Ambec Corinne Langinier Stéphane Lemarié |
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Institution: | Stefan Ambec is Researcher at Toulouse School of Economics (INRA-LERNA), Corinne Langinier is adjunct Assistant Professor, Department of Economics, Iowa State University and Stéphane Lemariéis Researcher at INRA-GAEL, Grenoble. |
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Abstract: | To reduce the competition from farmers who self-produce seed, an inbred line seed producer can switch to nondurable hybrid seed. In a two-period framework, we first investigate the impact of crop durability on self-production, pricing and switching decisions. Second, we study how the introduction of a fee paid by self-producing farmers affects those decisions. We find that the monopolist may produce technologically dominated hybrid seed in order to extract more surplus from farmers. Further, the introduction of a self-production fee improves efficiency. |
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Keywords: | durable good innovation license fees Plant Breeder's Rights |
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