publication . Preprint . 2012

Small is Beautiful? Firm's Size, Prevention & Food Safety.

Rouviere, Elodie; Soubeyran, Raphael;
Open Access
  • Published: 14 May 2012
The European General Food Law of 2005 and the newly promulgated FDA Food Safety Modernization Act (FFSMA) of 2010 ask all food operators to implement preventive efforts. In this article, we explore the link between firm’s size and preventive efforts. We show two main results. First, when there is no cross-contamination, small firms will provide higher preventive efforts than large firms. When there is crosscontamination, the effort-size curve may have a "inverted-U" shape. From our results we can argue that when implementing or enforcing food safety regulations, public authorities should consider both firms size and food safety hazard.
free text keywords: prevention effort, firm size, food safety, Agribusiness, Food Consumption/Nutrition/Food Safety, Industrial Organization, Risk and Uncertainty, Q18, L15, L5,

[1] Colatore, C. and Caswell, J. 1999. The Cost of HACCP Implementation In The Seafood Industry: A Case Study Of Breaded Fish." In: Unnevehr, L. (Ed) The Economics of HACCP: New Studies of Costs and Benefits, St. Paul, MN: Eagan Press.

[2] Cho, B. and Hooker, N. 2007. Voluntary vs. Mandatory Approaches to Food Safety: Considering Heterogeneous Firms. Foodborne Pathogens and Disease. 4(4): 505-515.

[3] Dachraoui K., Dionne, G. Eckhoutd, L. Godfroid, P., 2004. Comparative Mixed Risk Aversion: Definition and Application to Self-Protection and Willingness to Pay. Journal of Risk and Uncertainty. 29(3): 264-276. [OpenAIRE]

[4] Eckhoutd, L., Gollier, C. 2005. The impact of prudence on optimal prevention. Economic Theory. 26(4): 989-994. [OpenAIRE]

[5] Ehrlich, I. and Becker, G. 1972. Market insurance, self insurance and self protection. Journal of Political Economy. 80: 623-648. [OpenAIRE]

[6] Henson, S., Caswell, J., 1999. Food Safety Regulation: An Overview Of Contemporary Issues. Food Policy. 24(6), 589-603

[7] Koenig, J., 2001. The Federal Food Safety Modernization Act: Impacts in Import and Small-Scale Production Sectors. Harvard University's DASH repository.[On-line]. Available:

[8] Menegatti, M., 2009. Optimal prevention and prudence in a two-period model. Mathematical Social Sciences. 58(3): 393-397. [OpenAIRE]

[9] Ribera, Luis, and Knutson, D. 2011. The FDA's Food Safety Modernization Act and Its Economic Implications. Choices Magazine. 26(4) [On-line]. Available: .

and as EΠ is quasi-concave in e, this results in e∗n+2 ≤ e∗n+1.

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue