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- W1576335024 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 research to design regulations and contracts that mitigate moral hazard and motivate producers to deliver safe food. and because illnesses often occur several days after the victim consumes the food. In this paper, we develop a model that incorporates sampling error, diagnostic error, and traceback error into a measure of the producer's utility from producing safe and unsafe food. We use the model to identify the maximum level of traceback error that will mitigate moral hazard and motivate producers to deliver safe food. We also identify the conditions under which the traceability system has no effect on the behaviour of suppliers. Our results suggest that efforts directed toward reducing errors in sampling and traceback and subsidizing safe production practices are likely to have the greatest impact on the safety of the food supply." @default.
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- W1576335024 date "2008-01-01" @default.
- W1576335024 modified "2023-09-23" @default.
- W1576335024 title "Traceability, Moral Hazard, and Food Safety" @default.
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- W1576335024 doi "https://doi.org/10.2139/ssrn.1328101" @default.
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