The product line strategy of a company selling seed with a licenced GM trait

Autor: Stéphane Lemarié, Etienne Campens, Delia Baghdasaryan
Přispěvatelé: Laboratoire d'Economie Appliquée de Grenoble (GAEL), Institut polytechnique de Grenoble - Grenoble Institute of Technology (Grenoble INP )-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Grenoble Alpes [2016-2019] (UGA [2016-2019]), Institut National de la Recherche Agronomique (INRA), Lactalis, Institut polytechnique de Grenoble - Grenoble Institute of Technology (Grenoble INP)-Institut National de la Recherche Agronomique (INRA)-Centre National de la Recherche Scientifique (CNRS)-Université Grenoble Alpes (UGA), Institut polytechnique de Grenoble - Grenoble Institute of Technology (Grenoble INP )-Centre National de la Recherche Scientifique (CNRS)-Institut National de la Recherche Agronomique (INRA)-Université Grenoble Alpes [2016-2019] (UGA [2016-2019])
Jazyk: angličtina
Rok vydání: 2017
Předmět:
licensing
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O32 - Management of Technological Innovation and R&D
ogm
Price discrimination
discrimination par les prix
Agricultural science
0502 economics and business
JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q1 - Agriculture/Q.Q1.Q16 - R&D • Agricultural Technology • Biofuels • Agricultural Extension Services
Economics
Economic impact analysis
050207 economics
Marketing
License
2. Zero hunger
Upstream (petroleum industry)
05 social sciences
Economic surplus
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
General Business
Management and Accounting
strategie de l'entreprise
JEL: D - Microeconomics/D.D4 - Market Structure
Pricing
and Design/D.D4.D43 - Oligopoly and Other Forms of Market Imperfection
Genetically modified organism
industrie des semences
Product line
Trait
050202 agricultural economics & policy
Food Science
Zdroj: Journal of Agricultural and Food Industrial Organization
Journal of Agricultural and Food Industrial Organization, De Gruyter, 2017, 15 (1), pp.n.a. ⟨10.1515/jafio-2016-0030⟩
ISSN: 1542-0485
DOI: 10.1515/jafio-2016-0030⟩
Popis: The economic impact of Genetically Modified Organisms (GMOs) depends heavily on the product line supplied by the seed companies. In this paper, we analyze the interlinking between seed product line and license contract signed between the seed company and the upstream agbiotech firm which owns the Genetically Modified (GM) trait. We show that if the farmers are sufficiently heterogeneous, the seed company prefers to price discriminate by supplying both GM and conventional seeds. In those circumstances, despite higher efficiency of the GM seed, the price increase is such that the farmer’s surplus decreases. This loss may even outweigh the aggregate gains of the seed and the agbiotech companies, thereby leading to a total welfare loss.
Databáze: OpenAIRE
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