Food and fraud: On the Codfather and harvest mislabeling.

We study incentives to mislabel output in multispecies fisheries managed by tradeable catch shares. Firms can save quota costs by misreporting species harvested, as seen in criminal proceedings against the Codfather. We show that price elasticities for the abundant species reported in the cheating w...

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Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 55; no. 3; pp. 463 - 499
Main Authors: DePiper, Geret, Holzer, Jorge
Format: Article
Published: Wiley-Blackwell Sep2024
Subjects:
Online Access:View this record in EBSCOhost
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      tig:
        atl: Food and fraud: On the Codfather and harvest mislabeling.
      aug:
        au:
          DePiper, Geret
          Holzer, Jorge
        affil:
          NOAA Fisheries, Northeast Fisheries Science Center
          The opinions expressed in this article are the author's own and do not reflect the view of the National Oceanic and Atmospheric Administration, the Department of Commerce, or the United States government
          Department of Agricultural and Resource Economics, University of Maryland
      su:
        Elasticity (Economics)
        Fraud
        Criminal procedure
        Prices
        Groundfishes
      sug:
        subj:
          Elasticity (Economics)
          Fraud
          Criminal procedure
          Prices
          Salt water fishing
          Groundfishes
      keyword:
        fraud
        mislabeling
        multispecies
        seafood
        transferable quota
        fraud
        mislabeling
        multispecies
        seafood
        transferable quota
      ab: We study incentives to mislabel output in multispecies fisheries managed by tradeable catch shares. Firms can save quota costs by misreporting species harvested, as seen in criminal proceedings against the Codfather. We show that price elasticities for the abundant species reported in the cheating will be higher for compliant than non‐compliant firms. Using data from the New England groundfish fishery, we test this prediction using a latent class hedonic price equation to identify compliant versus non‐compliant firms. We then estimate multi‐output technologies for compliant and noncompliant firms to identify differences in substitution possibilities. Our empirical results align with theoretical expectations and are robust to placebo tests.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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