[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/aaea05/19340.html
   My bibliography  Save this paper

Shepherd's Dilemma

Author

Listed:
  • Sheriff, Glenn
  • Osgood, Daniel E.
Abstract
Recent outbreaks of Rift Valley Fever in sheep have led to boycotts of African livestock by Middle Eastern importers. To normalize trade, attempts have been made to apply new livestock forecasting and monitoring technologies. In this process, producers have exhibited a resistance in revealing livestock health information, a resistance that could jeopardize the information system and lead to further boycotts. We investigate the incentives governing this problem and model the most fundamental contract issues, those concerning reputation and credibility. Equilibrium contracts require that the buyer compensate the producer for private information to address the shepherd's dilemma of concealing livestock information (and facing continued boycotts) or revealing the information and being blacklisted.

Suggested Citation

  • Sheriff, Glenn & Osgood, Daniel E., 2005. "Shepherd's Dilemma," 2005 Annual meeting, July 24-27, Providence, RI 19340, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19340
    DOI: 10.22004/ag.econ.19340
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19340/files/sp05sh02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19340?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
    ---><---

    References listed on IDEAS

    as
    1. Baron, David P. & Besanko, David, 1984. "Regulation and information in a continuing relationship," Information Economics and Policy, Elsevier, vol. 1(3), pages 267-302.
    2. Kim C. Border & Joel Sobel, 1987. "Samurai Accountant: A Theory of Auditing and Plunder," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(4), pages 525-540.
    3. Dilip Mookherjee & Ivan Png, 1989. "Optimal Auditing, Insurance, and Redistribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(2), pages 399-415.
    4. Fahad Khalil, 1997. "Auditing Without Commitment," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 629-640, Winter.
    5. A. Pfaff & K. Broad & M. Glantz, 1999. "Who benefits from climate forecasts?," Nature, Nature, vol. 397(6721), pages 645-646, February.
    6. Townsend, Robert M., 1988. "Information constrained insurance : The revelation principle extended," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 411-450.
    7. Townsend, Robert M., 1979. "Optimal contracts and competitive markets with costly state verification," Journal of Economic Theory, Elsevier, vol. 21(2), pages 265-293, October.
    8. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    9. Osgood, Daniel E., 2005. "Snowblind: the importance of climate information for recreational real estate," 2005 Annual meeting, July 24-27, Providence, RI 19571, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. N/A, 2004. "Index for 2004," European Union Politics, , vol. 5(4), pages 511-512, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Jacques Laffont, 2003. "Enforcement, Regulation and Development," Journal of African Economies, Centre for the Study of African Economies, vol. 12(Supplemen), pages 193-211, September.
    2. Harold L. Cole, 2008. "Self-Enforcing Stochastic Monitoring and the Separation of Debt and Equity Claims," PIER Working Paper Archive 08-025, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    3. Nicolas Boccard & Patrick Legros, 2017. "Audit Competition in Insurance Oligopolies," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(3), pages 371-399, September.
    4. Jeffrey M. Lacker, 1989. "Limited commitment and costly enforcement," Working Paper 90-02, Federal Reserve Bank of Richmond.
    5. Strausz, Roland, 2006. "Buried in paperwork: Excessive reporting in organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 460-470, August.
    6. Davide IACOVONI & Alberto ZAZZARO, 2000. "Legal System Efficiency, Information Production, and Technological Choice: A Banking Model," Working Papers 129, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. Choe, Chongwoo, 1998. "Contract design and costly verification games," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 327-340, February.
    8. Anna Maria Menichini & Peter Simmons, 2014. "Sorting the good guys from bad: on the optimal audit structure with ex-ante information acquisition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 57(2), pages 339-376, October.
    9. Persons, John C., 1997. "Liars Never Prosper? How Management Misrepresentation Reduces Monitoring Costs," Journal of Financial Intermediation, Elsevier, vol. 6(4), pages 269-306, October.
    10. M. Martin Boyer, 2007. "Resistance (to Fraud) Is Futile," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 74(2), pages 461-492, June.
    11. Dionne, Georges, 1998. "La mesure empirique des problèmes d’information," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(4), pages 585-606, décembre.
    12. Berger, Allen N. & Espinosa-Vega, Marco A. & Frame, W. Scott & Miller, Nathan H., 2011. "Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information," Journal of Financial Intermediation, Elsevier, vol. 20(1), pages 55-70, January.
    13. Angelo Baglioni & Luca Colombo, 2009. "Managers’ Compensation And Misreporting: A Costly State Verification Approach," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 278-289, April.
    14. Longhofer, Stanley D., 1997. "Absolute Priority Rule Violations, Credit Rationing, and Efficiency," Journal of Financial Intermediation, Elsevier, vol. 6(3), pages 249-267, July.
    15. Andreas Asseyer, "undated". "Optimal monitoring in dynamic procurement contracts," BDPEMS Working Papers 2015002, Berlin School of Economics.
    16. Karel Janda, 2006. "Agency Theory Approach to the Contracting between Lender and Borrower [Smluvní vztah mezi věřitelem a dlužníkem z hlediska přístupu teorie zastoupení]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2006(3), pages 34-47.
    17. Boyer, Martin, 2001. "Les clauses de valeur à neuf sont-elles optimales?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(1), pages 53-74, mars.
    18. Strausz, Roland, 2006. "Timing of verification procedures: Monitoring versus auditing," Journal of Economic Behavior & Organization, Elsevier, vol. 59(1), pages 89-107, January.
    19. Bayer, Ralph-C., 2006. "A contest with the taxman - the impact of tax rates on tax evasion and wastefully invested resources," European Economic Review, Elsevier, vol. 50(5), pages 1071-1104, July.
    20. Dionne, Georges & Gagné, Robert, 1997. "The non-optimality of deductible contracts against fraudulent claims: an empirical evidence in automobile insurance," Working Papers 97-5, HEC Montreal, Canada Research Chair in Risk Management.

    More about this item

    Keywords

    Livestock Production/Industries;

    Statistics

    Access and download statistics

    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:aaea05:19340. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/aaeaaea.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.