Resende-Filho, Moises and Buhr, Brian (2006): A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle.
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This article investigates the economic value and the optimal expected traceback rate of success for a traceability system with a case study of injection-site lesions in fed cattle in the US. By maintaining the identity of the feedlot owners corresponding to retail beef cuts, a traceability system enables the employment of incentive mechanisms by a meat packer to overcome supply chain information asymmetry. Results of this article show that the first-best action of producers may be induced by meat packers with incentive mechanisms created with a low expected traceback rate of success. This suggests that even inexpensive traceability systems may induce appropriate actions by producers and objectives of inducing compliance by suppliers may be less costly than objectives of recall.
|Item Type:||MPRA Paper|
|Original Title:||A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle|
|Keywords:||Information Asymmetry; Identity Preservation; Meat Traceability; Supply Chain Management|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis
|Depositing User:||Moises Resende-Filho|
|Date Deposited:||15. Oct 2006|
|Last Modified:||12. Feb 2013 11:56|
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Available Versions of this Item
A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle. (deposited 15. Oct 2006)
- A principal-agent model for evaluating the economic value of a beef traceability system: a case study with injection-site lesions control in fed cattle. (deposited 20. Jun 2007)