Article ID Journal Published Year Pages File Type
5070733 Food Policy 2011 11 Pages PDF
Abstract

This paper places the modern spread of diet-related chronic disease in the United States within the context of more than a century of innovation in food processing technology, discovery in nutrition science, and corrective policy measures aimed at improving public health. We ask whether the current state of affairs represents a market failure, and-if so-what might be done about it. We argue that while today's industrial food system has its advantages, the asymmetric information problems inherent to this system have resulted in a “lemons-style” breakdown in the market for processed foods. The appropriate policy response to such situations (namely, verifiable quality standards) is well known, but such policies are likely (in the short run) to reduce profits for existing large industrial producers of food. In light of the food industry's long history of success at regulatory capture, we propose the formation of a new independent food standards agency devoted to protecting the interests of the American consumer.

Research highlights► We ask whether American diet provides efficient levels of nutritional quality. ► We review history of food processing, nutrition science, and food policy in US. ► We note that critical aspects of nutritional quality are unobservable by consumers. ► We comment on the food industry's long history of regulatory capture. ► We propose an independent food standards agency to correct the market failure.

Related Topics
Life Sciences Agricultural and Biological Sciences Food Science
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