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CABI Book Chapter

International trade and policies for genetically modified products.

Book cover for International trade and policies for genetically modified products.

Description

This book addresses international trade and policy issues concerning agricultural biotechnology. The 16 chapters in this volume are edited and revised versions of papers presented at the 8th International Conference of the International Consortium on Agricultural Biotechnology Research, held in Ravello, Italy, on 8-11 July 2004. Part I includes four chapters with an analytical focus. They deal wit...

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Chapter 2 (Page no: 12)

Restricted monopoly R&D pricing: uncertainty, irreversibility and non-market effects.

This chapter extends the model for transgenic innovation pricing by Weaver and Kim (Incentives for R&D to develop GMO seeds: restricted monopoly, nonmarket effects, and regulation. Presented at the 6th International Conference of ICABR, Ravello, 2002) by considering ex-ante uncertainty and irreversibility and the implications for monopolistic pricing. First, the chapter briefly reviews the model by Weaver and Kim and includes in a second step uncertainty and irreversibility in a real options framework for considering the timing of investment in or adoption of innovation. Based on this framework, the next section evaluates pricing and adoption implications of the evolution of incentives, irreversible costs and benefits, as well as of the returns to the innovation. The chapter finds that irreversibility and uncertainty of a new technology reduce the willingness to pay of the technology adopter and the pricing power of the monopolist technology provider.

Other chapters from this book

Chapter: 1 (Page no: 1) Biotechnology risks and project interdependence. Author(s): Knudsen, O. K. Scandizzo, P. L.
Chapter: 3 (Page no: 22) Biotechnology and the emergence of club behaviour in agricultural trade. Author(s): Tothova, M. Oehmke, J. F.
Chapter: 4 (Page no: 34) The labelling of genetically modified products in a global trading environment. Author(s): Scandizzo, S.
Chapter: 5 (Page no: 43) Tree biotechnology: regulation and international trade. Author(s): Sedjo, R. A.
Chapter: 6 (Page no: 50) Commercialized products of biotechnology and trade pattern effects. Author(s): Smyth, S. Kerr, W. A. Davey, K. A.
Chapter: 7 (Page no: 64) The coexistence of GM and non-GM arable crops in the EU: economic and market considerations. Author(s): Brookes, G.
Chapter: 8 (Page no: 79) Research spillovers in the biotech industry: the case of oilseed rape. Author(s): Gray, R. S. Malla, S. Tran, K. C.
Chapter: 9 (Page no: 97) Mergers, acquisitions and flows of agbiotech intellectual property. Author(s): Schimmelpfennig, D. King, J.
Chapter: 10 (Page no: 110) The impact of regulation on the development of new products in the food industry. Author(s): Menrad, K. Blind, K.
Chapter: 11 (Page no: 125) Patents versus plant varietal protection. Author(s): Eaton, D. Tongeren, F. van
Chapter: 12 (Page no: 133) Governing innovative science: challenges facing the commercialization of plant-made pharmaceuticals. Author(s): Smyth, S. Khachatourians, G. G. Phillips, P. W. B.
Chapter: 13 (Page no: 147) Are GURTs needed to remedy intellectual property failures and environmental problems with GM crops? Author(s): Budd, G.
Chapter: 14 (Page no: 162) Economic effects of producing or banning GM crops. Author(s): Wronka, J. Schmitz, P. M.
Chapter: 15 (Page no: 175) Opposition to genetically modified wheat and global food security. Author(s): Haggui, F. Phillips, P. W. B. Gray, R. S.
Chapter: 16 (Page no: 191) International impacts of Bt cotton adoption. Author(s): Frisvold, G. B. Tronstad, R. Reeves, J. M.

Chapter details

  • Author Affiliation
  • Department of Agricultural Economics, Pennsylvania State University, 207D Armsby Building, University Park, PA 16802, USA.
  • Year of Publication
  • 2006
  • ISBN
  • 9780851990569
  • Record Number
  • 20063078143