Hostname: page-component-848d4c4894-pjpqr Total loading time: 0 Render date: 2024-06-23T02:05:49.213Z Has data issue: false hasContentIssue false

GM vs. Non-GM: A Survival Analysis of U.S. Hybrid Seed Corn

Published online by Cambridge University Press:  15 September 2016

Xingliang Ma
Affiliation:
International Food Policy Research Institute, Washington D.C.
Guanming Shi*
Affiliation:
Department of Agricultural and Applied Economics at University of Wisconsin, Madison
*
Correspondence: Department of Agricultural and Applied EconomicsUniversity of WisconsinMadison, WI 53706-1503Phone 608.263.6250Emailgshi@wisc.edu.
Get access

Abstract

We analyze the rate of survival of hybrid seed corn in the U.S. market between 2000 and 2007 and find that product characteristics and market structures have significant impacts. The results suggest that survival rates depend on spillover effects of learning regarding genetically modified seeds and close substitute seeds and that hybrids planted in the Corn Belt survive longer in the market than hybrids planted in other parts of the country. Given increasing concentration in seed and agricultural biotechnology sectors, our results shed light on factors that affect the survival of hybrid corn seeds under various market conditions.

Type
Contributed Papers
Copyright
Copyright © 2013 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agarwal, R., and Gort, M. 2002. “Firm and Product Life Cycles and Firm Survival.American Economic Review 92(2): 184190.Google Scholar
Asplund, M., and Sandin, R. 1999. “The Survival of New Products.Review of Industrial Organization 15(3): 219237.Google Scholar
Baerenklau, K.A. 2005. “Toward an Understanding of Technology Adoption: Risk, Learning, and Neighborhood Effects.Land Economics 81(1): 119.Google Scholar
Bayus, B. 1998. “An Analysis of Product Lifetimes in a Technologically Dynamic Industry.Management Science 44(6): 763775.Google Scholar
Chataway, J., and Tait, J. 2000. PITA Project: Policy Influences on Technology for Agriculture: Chemicals, Biotechnology, and Seeds (Annex C11). Monsanto monograph. TSER Programme, European Commission Project No. PL 97/1280, October. Available at http://technology.open.ac.uk/cts/pita/AnnC11-mono-monsanto.pdf (accessed March 12, 2012).Google Scholar
de Figueiredo, J., and Kyle, M. 2001. “Competition, Innovation, and Product Exit.Massachusetts Institute of Technology Sloan School of Management and Department of Economics, Center for Innovation in Product Development (CIPD). Available at http://dspace.mit.edu/handle/1721.1/3815.Google Scholar
de Figueiredo, J., and Kyle, M. 2006. “Surviving the Gales of Creative Destruction: The Determinants of Product Turnover.Strategic Management Journal 27(3): 241264.Google Scholar
Fernandez-Cornejo, J. 2004. The Seed Industry in U.S. Agriculture: An Exploration of Data and Information on Crop Seed Markets, Regulation, Industry Structure, and Research and Development, Agriculture Information Bulletin Number 786, Economic Research Service, USDA.Google Scholar
Fontana, R., and Nesta, L. 2009. “Product Innovation and Survival in a High-tech Industry.Review of Industrial Organization 34(4): 287306.Google Scholar
Foster, A.D., and Rosenzweig, M.R. 1995. “Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture.Journal of Political Economy 103(6): 11761209.Google Scholar
Greenstein, S.M., and Wade, J.B. 1998. “The Product Life Cycle in the Commercial Mainframe Computer Market, 1968-1982.RAND Journal of Economics 29(4): 772789.Google Scholar
Griliches, Z. 1960. “Hybrid Corn and the Economics of Innovation.Science 132(3422): 275280.Google Scholar
Kleinbaum, D.G., and Klein, M. 2005. Survival Analysis: A Self-Learning Text. The Springer Science+Business Media, Inc. Google Scholar
Klepper, S. 1996. “Entry, Exit, Growth, and Innovation over the Product Life Cycle.American Economic Review 86(3): 562583.Google Scholar
Klepper, S., and Simons, K.L. 2000. “The Making of an Oligopoly: Firm Survival and Technological Change in the Evolution of the U.S. Tire Industry.The Journal of Political Economy 108(4): 728760.Google Scholar
Magnier, A., Kalaitzandonakes, N., and Miller, D. 2010. “Product Life Cycles and Innovation in the U.S. Seed Corn Industry.International Food and Agribusiness Management Review 13(3): 1736.Google Scholar
Munshi, K. 2004. “Social Learning in a Heterogeneous Population: Technology Diffusion in the Indian Green Revolution.Journal of Development Economics 73(1): 185213.Google Scholar
National Agricultural Statistics Service. 2009. “Acreage.USDA, National Agricultural Statistics Service. Available at http://usda.mannlib.cornell.edu/usda/current/Acre/Acre-06-30-2009.pdf (accessed November 10, 2013).Google Scholar
Nikolaeva, R., Kalwani, M.U., Robinson, W.T., and Sriram, S. 2009. “Survival Determinants for Online Retailers.Review of Marketing Science 7: Article 1.Google Scholar
Pinkse, J., and Slade, M. 2004. “Mergers, Brand Competition, and the Price of a Pint.European Economic Review 48(3): 617643.Google Scholar
Requena-Silvente, F., and Walker, J.T. 2005. “Competition and Product Survival in the UK Car Market.Applied Economics 37(19): 22892295.Google Scholar
Requena-Silvente, F., and Walker, J.T. 2009. “The Survival of Differentiated Products: An Application to the UK Automobile Market, 1971-2002.Manchester School 77(3): 288316.Google Scholar
Schoenfeld, D. 1982. “Partial Residuals for the Proportional Hazards Regression Model.Biometrika 69(1): 239241.Google Scholar
Shi, G. 2009. “Bundling and Licensing of Genes in Agricultural Biotechnology.American Journal of Agricultural Economics, 91(1): 264274.Google Scholar
Shi, G., and Chavas, J.P. 2011. “Pricing and Vertical Organization of Differentiated Products.Journal of Agricultural and Resource Economics 36(3): 448464.Google Scholar
Shi, G., Chavas, J.P., and Stiegert, K. 2010. “An Analysis of the Pricing of Traits in the U.S. Corn Seed Market,” American Journal of Agricultural Economics 92(5): 13241338.Google Scholar
Shi, G., Stiegert, K., and Chavas, J.P. 2011. “An Analysis of Bundle Pricing in Horizontal and Vertical Markets: The Case of the U.S. Cottonseed Market.Agricultural Economics 42: 7788.Google Scholar
Stiegert, K., Shi, G., and Chavas, J.P. 2011. “Spatial Pricing of Genetically Modified Hybrid Corn Seeds.Carter, C., Moschini, G., and Sheldon, I., eds., p. 149172. Genetically Modified Food and Global Welfare. Bingley, UK: Emerald Group Publishing Limited.Google Scholar
Varney, C.A. 2009. “Vigorous Antitrust Enforcement in this Challenging Era.Remarks prepared for the U.S. Chamber of Commerce, Department of Justice. Available at www.justice.gov/atr/public/speeches/245777.htm.Google Scholar