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Activists and Corporate Behavior in Food Processing and Retailing: A Sequential Bargaining Game

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  • Hudson, Darren
  • Lusk, Jayson L.

Abstract

This study examines the strategic interaction between food companies and activists using a game theoretic model of sequential bargaining in the absence of complete information. In a rather confined set of circumstances, findings indicate it is always in the best interest of the food company to comply with activists' demands. More frequently, however, there will be cases where compliance is not optimal, depending on the size of the expected effect of protest, cost of defending against protest, and the cost of protest to the activist.

Suggested Citation

  • Hudson, Darren & Lusk, Jayson L., 2004. "Activists and Corporate Behavior in Food Processing and Retailing: A Sequential Bargaining Game," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-15, April.
    • Handle: RePEc:ags:jlaare:31137
    DOI: 10.22004/ag.econ.31137
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    File URL: https://ageconsearch.umn.edu/record/31137/files/29010079.pdf
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    References listed on IDEAS

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    1. Rosenberg, D. & Shavell, S., 1985. "A model in which suits are brought for their nuisance value," International Review of Law and Economics, Elsevier, vol. 5(1), pages 3-13, June.
    2. Katz, Avery, 1990. "The effect of frivolous lawsuits on the settlement of litigation," International Review of Law and Economics, Elsevier, vol. 10(1), pages 3-27, May.
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    Cited by:

    1. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, vol. 34(6), pages 492-498, December.
    2. Cho, Yongwon, 2013. "The Effect of the National School Lunch Program on Childhood Obesity," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150758, Agricultural and Applied Economics Association.
    3. Wolf, Christopher A. & Tonsor, Glynn T., 2017. "Cow Welfare in the U.S. Dairy Industry: Willingness-to-Pay and Willingness-to-Supply," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    4. McKendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-21.

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