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Modelling interdependent participation incentives: dynamics of a voluntary livestock disease control programme

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  • Tong Wang
  • David A. Hennessy

Abstract

With focus on seedstock herds selling replacements and a qualified class of diseases, this paper models producers' interdependent incentives to participate in a voluntary livestock disease control programme. Under strategic complementarity among participation decisions, momentum can build such that market premium for participation and participation rate increase sequentially. Non-participation, partial participation and full participation can all be Nash equilibria. Participation cost heterogeneity will dispose the outcome towards incomplete participation. We find plausible conditions under which temporary government subsidies cause tipping towards full participation. Applying parameters from the literature on Johne's disease, we illustrate factors that may affect participation.

Suggested Citation

  • Tong Wang & David A. Hennessy, 2014. "Modelling interdependent participation incentives: dynamics of a voluntary livestock disease control programme," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(4), pages 681-706.
    • Handle: RePEc:oup:erevae:v:41:y:2014:i:4:p:681-706.
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    File URL: http://hdl.handle.net/10.1093/erae/jbt038
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    Cited by:

    1. Ma, Meilin & Delgado, Michael S. & Wang, H. Holly, 2024. "Risk, arbitrage, and spatial price relationships: Insights from China's hog market under the African Swine Fever," Journal of Development Economics, Elsevier, vol. 166(C).
    2. Osseni, Abdel Fawaz & Gohin, Alexandre & Rault, Arnaud, 2022. "Optimal Biosecurity Policy with Heterogeneous Farmers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    3. Tong Wang & David A. Hennessy, 2015. "Strategic Interactions Among Private and Public Efforts When Preventing and Stamping Out a Highly Infectious Animal Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 435-451.
    4. Cristina Salvioni & Simone Cerroni, 2023. "Eliciting beekeepers’ preferences for the small hive beetle control policy in Italy: a contingent valuation survey approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-20, December.
    5. Wang, Tong & Jin, Hailong, 2024. "Impact of cost share programs on conservation practice adoption: A new perspective," 2024 Annual Meeting, July 28-30, New Orleans, LA 343974, Agricultural and Applied Economics Association.
    6. Hennessy, David A. & Rault, Arnaud, 2023. "On systematically insufficient biosecurity actions and policies to manage infectious animal disease," Ecological Economics, Elsevier, vol. 206(C).
    7. Cariappa, A G Adeeth & Chandel, B S & Sankhala, Gopal & Mani, Veena & R, Sendhil & Dixit, Anil Kumar & Meena, B S, 2022. "Anionic mineral mixture prevents milk fever and improves farmer income: evidence from a randomized controlled trial," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 35(1), June.
    8. A. G. Adeeth Cariappa & B. S. Chandel & Gopal Sankhala & Veena Mani & Sendhil R & Anil Kumar Dixit & B. S. Meena, 2021. "Prevention Is Better Than Cure: Experimental Evidence From Milk Fever Incidence in Dairy Animals of Haryana, India," Papers 2106.03643, arXiv.org.

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