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A behavioural economic analysis of moral hazards in food production: the case of deviant economic behaviour and disclosure policies on the restaurant, ready-to-eat and retail level

Project

Food and consumer protection

This project contributes to the research aim 'Food and consumer protection'. Which funding institutions are active for this aim? What are the sub-aims? Take a look:
Food and consumer protection


Project code: keine Angabe
Contract period: 01.12.2011 - 30.11.2014
Purpose of research: Inventory & Assessment

Deviant behaviour on various levels of the food supply chain may cause food risks. It entails irregular technological procedures which cause (increased probabilities of) adverse outcomes for buyers and consumers. Besides technological hazards and hitherto unknown health threats, moral hazard and malpractice in food businesses represent an additional source of risk which can be termed “behavioural food risk”. From a regulatory perspective, adverse outcomes associated with deviance represent negative externalities that are caused by the breaking of rules designed to prevent them. From a rational choice perspective, the probability of malpractice increases with the benefits for its authors. It decreases with the probability of detection and resulting losses. It also decreases with bonds to social norms that protect producers from yielding to economic temptations. The design of mechanisms that reduce behavioural risks and prevent malpractice requires an understanding of why food businesses obey or do not obey the rules. This project aims to contribute to a better understanding of malpractice on the restaurant/retail level through comparative case studies and statistical analyses of food inspection and survey data. Accounting for the complexity of economic behaviour, we will not only look at economic incentives but consider all relevant behavioural determinants, including social context factors.

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