Title: When are private standards more stringent than public standards?
Authors: Vandemoortele, Thijs
Deconinck, Koen
Issue Date: 25-Mar-2013
Publisher: KU Leuven LICOS
Series Title: LICOS - Discussion paper series 333/2013 pages:1-43
Abstract: Retailers’ private standards are increasingly important in addressing consumer concerns about safety, quality and social and environmental issues. Empirical evidence shows that these private standards are frequently more stringent than their public counterparts. This article develops a political economy model that may contribute to explaining this stylized fact. We show that if producers exercise their political power to persuade the government to impose a lower public standard, retailers may apply their market power to install a private standard at a higher level than the public one, depending on several factors.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center of Development Economics, Leuven
LICOS - Centre for Institutions and Economic Performance, Leuven

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