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Research incentives and tradeoff for improving productivity of different crops

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  • Lemarié, Stéphane
  • Parenty, Sébastien

Abstract

This paper addresses the balance between different crops and its determination by research investment. This balance results from the cropping-plan decision of the farmers. This decision depends on various factors such as the seed performance, the pest problems, the output prices, etc. We show how the introduction of a productivity decrease due to the market size of each crop is likely to set out a more equilibriated market. Further, our model analysis the main determinants of research investment by a monopoly, and shows that this investment tends to equilibrate the market.

Suggested Citation

  • Lemarié, Stéphane & Parenty, Sébastien, 2016. "Research incentives and tradeoff for improving productivity of different crops," 149th Seminar, October 27-28, 2016, Rennes, France 245161, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa149:245161
    DOI: 10.22004/ag.econ.245161
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. Pierre Dubois & Olivier de Mouzon & Fiona Scott-Morton & Paul Seabright, 2015. "Market size and pharmaceutical innovation," RAND Journal of Economics, RAND Corporation, vol. 46(4), pages 844-871, October.
    3. Daron Acemoglu & Joshua Linn, 2004. "Market Size in Innovation: Theory and Evidence from the Pharmaceutical Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 1049-1090.
    4. Sylvie Charlot & Chokri Dridi & Stephane Lemarié, 2015. "Market size and innovation: An application to the French seed market for large crops," Post-Print hal-02091175, HAL.
    5. Shon M. Ferguson, 2015. "Endogenous Product Differentiation, Market Size and Prices," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 45-61, February.
    6. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
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    Keywords

    Agricultural and Food Policy; Research and Development/Tech Change/Emerging Technologies;

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