IDEAS home Printed from https://ideas.repec.org/p/ags/nddaae/7630.html
   My bibliography  Save this paper

Valuing Private Sector Incentives to Invest in Food Protection Measures in the Milk and Green Onion Sectors

Author

Listed:
  • Lewis, Andrew
  • Nganje, William E.
  • Mattson, Jeremy W.
  • Miljkovic, Dragan
  • Wilson, William W.

Abstract

This study provides a framework to value investment strategies to mitigate possible agro-terrorism occurrences in the food supply chain and to determine where these investments would reduce the most risk. This framework is applied to two food sectors that could be at risk: milk and green onions. Stochastic optimization is used to determine the costs and risk premiums of alternative tracking strategies. The real options method along with a portfolio of options, also referred to as the "tomato garden" framework, is used to determine where and when alternative intervention strategies should be implemented to reduce the most risk. Finally, policy implications are derived on the cost-risk tradeoffs, probability of attacks, and containment efforts if there is an attack by using game theory to determine the incentives needed to motivate participants in the milk and green onion supply chains to invest in security measures.

Suggested Citation

  • Lewis, Andrew & Nganje, William E. & Mattson, Jeremy W. & Miljkovic, Dragan & Wilson, William W., 2007. "Valuing Private Sector Incentives to Invest in Food Protection Measures in the Milk and Green Onion Sectors," Agribusiness & Applied Economics Report 7630, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaae:7630
    DOI: 10.22004/ag.econ.7630
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/7630/files/aer620.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.7630?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nddaae:7630. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dandsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.