tag:blogger.com,1999:blog-2830084253401570472.post3867861506342980067..comments2024-03-28T09:22:36.967+13:00Comments on Offsetting Behaviour: Food Bill revisitedEric Cramptonhttp://www.blogger.com/profile/15831696523324469713noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2830084253401570472.post-43298744953495949902012-02-04T22:07:04.233+13:002012-02-04T22:07:04.233+13:00The certificator becomes residual claimant on bad ...The certificator becomes residual claimant on bad outcomes; all brands bearing the certificate take the reputational hit if any affiliated brand comes up with problems. Yes, it pushes the trust problem back a level. But to a level that can be dealt with. Check Dan Klein's work on reputation.<br /><br />I don't know the extent to which Riccarton Bush checks stuff with its vendors. I expect that if there were a big salmonella outbreak there, the market would take a hit big enough to ensure that it's keeping sufficient eye on its vendors.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-77647097848760639992012-02-03T20:47:07.472+13:002012-02-03T20:47:07.472+13:00Don't certification services suffer from the s...Don't certification services suffer from the same problems of informational assymetry? Alternative certification services can compete, and if consumers don't know which one to believe, bad certification services can drive out good certification services because they produce certification services at lower cost (i.e., they don't test.) Do you happen to know if Riccarton Bush Market tests any of the produce that is sold there? Are there currently certification services for small food producers? If not, does that mean that there isn't a problem? Or does it mean that the lemons problem (no pun intended) in certification services dominates the food market so that no certification services get produced. And how would you tell the difference? :-)BReedNZhttps://www.blogger.com/profile/04092380264867736747noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-77718523448964257502012-02-01T21:30:32.833+13:002012-02-01T21:30:32.833+13:00Whenever there's that kind of risk, there'...Whenever there's that kind of risk, there's an opportunity for somebody to provide certification services, right? Think about auto mechanics. Similar kinds of asymmetric information problems - you don't know which ones will gouge you. They know that too, so they bond themselves with MTA so you'll trade with them.<br /><br />For small food handlers, I trust the folks running Riccarton Bush Market; they'll also take some of the reputational hit if something goes wrong. They're helping provide the kind of bonding service that MTA provides for mechanics. <br /><br />We really need to be careful that regulations don't wind up being an inferior substitute for the informal existing mechanisms that they might otherwise supersede.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-82817788743987137252012-02-01T20:56:28.678+13:002012-02-01T20:56:28.678+13:00Is it possible that there is an externality at pla...Is it possible that there is an externality at play here? Somebody buys from a small time food producer. They die from food poisoning. Media covers the story on the dangers from buying from small producers. That hurts other small producers, as consumers view their product as less safe than before. Solution? Regulation? What do you think?BReedNZhttps://www.blogger.com/profile/04092380264867736747noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-75533957740914275572012-01-31T10:54:40.645+13:002012-01-31T10:54:40.645+13:00Man, I wish I could force people to pay me for a s...Man, I wish I could force people to pay me for a service they don't want. Great business model that.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-59392377836559210402012-01-31T10:50:09.047+13:002012-01-31T10:50:09.047+13:00Certainly yes to your second paragraph.
Meanwhile...Certainly yes to your second paragraph.<br /><br />Meanwhile, have you read this little gem :) <br /><br />http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10782367Mark Hubbardnoreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-91875313228310429072012-01-31T09:37:38.458+13:002012-01-31T09:37:38.458+13:00There are a few potential equilibria, Mark. A comp...There are a few potential equilibria, Mark. A completely laissez-faire approach could be first best. But I'd worry that the existing regulatory regime gives cover to firms to avoid the costs of nuisance lawsuits from folks experiencing adverse outcomes from low-level risks; replacing that entirely with tort could increase transactions costs. <br /><br />I worry more that moving from where we are to a more prescriptive approach erodes consumers' attentiveness to food safety: with a sufficiently stringent regime, consumers will offload their diligence to the government, but that can never be enough unless the regulatory regime moves to very stringent standards. The mid-level regs regime may not be a stable equilibrium.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.comtag:blogger.com,1999:blog-2830084253401570472.post-59956226205793907532012-01-31T08:39:18.318+13:002012-01-31T08:39:18.318+13:00Love what you're writing on the Food Bill, Eri...Love what you're writing on the Food Bill, Eric.<br /><br />I wonder how far you go though? For me the question is why do we need to regulate at all? What are the food regulations attempting to do, that is not already covered by existing criminal and civil law? For example, negligence is covered anyway, as is, obviously, willfully poisoning someone. I suggest we don't need any specific food related bureaucracy and bureaucrats, and certainly not Food Officers with the search and seizure powers of the IRD.Mark Hubbardhttp://www.solopassion.com/blog/966noreply@blogger.com