Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52450
Authors: 
Choi, E. Kwan
Year of Publication: 
2011
Series/Report no.: 
CESifo working paper: Resource and Environment Economics 3624
Abstract: 
Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.
Subjects: 
genetic contamination
JEL: 
Q50
Document Type: 
Working Paper

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