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A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy Author info | Abstract | Publisher info | Download info | Related research | Statistics McCluskey, Jill J.
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Demand for healthy, safe and environmentally friendly food products has been increasing. In response, producers are marketing organic and other quality-differentiated foods, sometimes claiming to have followed sound environmental and animal welfare practices. These products frequently have unobservable quality attributes. If the profit-maximizing producer is able to deceive the consumer with a false claim, then he or she will enjoy a higher price with lower production costs (compared to the full disclosure outcomes). The analysis described in this paper shows that repeat-purchase relationships and third party monitoring are required for high-quality credence goods to be available. Policy implications of this analysis for national organic food standards are discussed.
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Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review .
Volume (Year): 29 (2000)
Issue (Month): 1 (April)
Pages:
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Handle: RePEc:ags:arerjl:31334Contact details of provider: Web page: http://www.narea.org/ More information through EDIRC
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Keywords: Demand and Price Analysis ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Grossman, Sanford J, 1981.
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Kreps, David M. & Wilson, Robert, 1982.
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"Predation, reputation, and entry deterrence ,"
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Paul Milgrom & John Roberts, 1997.
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Levine's Working Paper Archive
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Gilles Grolleau & Lisette Ibanez & Naoufel Mzoughi, 2007.
"Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs ,"
European Journal of Law and Economics ,
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Chang, Hui-Shung Christie, 2004.
"Labelling Issues of Organic and GM Foods in Australia ,"
Working Papers
12934, University of New England, School of Economics.
[Downloadable!]
Albersmeier, Friederike & Schulze, Holger & Spiller, Achim, 2007.
"System Dynamics in Quality Certifications: Development of an Audit Quality Controlling System ,"
2007 1st Forum, February 15-17, 2007, Innsbruck, Austria
6585, International European Forum on Innovation and System Dynamics in Food Networks.
[Downloadable!]
Annunziata, Azzurra & Ianuario, Sara & Pascale, Paola, 2009.
"Consumersâ attitudes toward labelling of ethical products: The case of organic and Fair Trade products ,"
83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland
50931, Agricultural Economics Society.
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Alexander E. Saak, 2002.
"Identity Preservation and False Labeling in the Food Supply Chain ,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
02-wp295, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
[Downloadable!]
Anania, Giovanni & Nistico, Rosanna, 2003.
"Public Regulation As A Substitute For Trust In Quality Food Markets. What If The Trust Substitute Cannot Be Fully Trusted? ,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
25924, International Association of Agricultural Economists.
[Downloadable!]
Other versions: Christensen, Bryan J. & Bailey, Deevon & Hunnicutt, Lynn & Ward, Ruby, 2003.
"Consumer Preferences for Public and Private Sector Certifications for Beef Products in the United States and the United Kingdom ,"
International Food and Agribusiness Management Review ,
International Food and Agribusiness Management Association (IAMA), vol. 6(03).
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Marc Law & Gary D. Libecap, 2006.
"The Determinants of Progressive Era Reform. The Pure Food and Drugs Act of 1906 ,"
NBER Chapters ,
in: Corruption and Reform: Lessons from America's Economic History, pages 319-342
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Other versions: SHELDON, Ian & Roe, Brian, 2008.
"Vertical Differentiation and Credence Goods: Harmonized Labeling and Gains from International Integration ,"
2008 Annual Meeting, July 27-29, 2008, Orlando, Florida
6340, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Hoehn, John P. & Deaton, B. James, 2004.
"The Welfare Consequences Of Certified Labeling For Credence Attributes ,"
Staff Papers
11758, Michigan State University, Department of Agricultural, Food, and Resource Economics.
[Downloadable!]
Alexander E. Saak, 2002.
"Identity Preservation and False Labeling in the Food Supply Chain ,"
Center for Agricultural and Rural Development (CARD) Publications
02-wp295, Center for Agricultural and Rural Development (CARD) at Iowa State University.
[Downloadable!]
Lupton, Sylvie, 2009.
"Commerce équitable et signaux : entre information et illusion [Fair trade and signalling: information and illusion] ,"
MPRA Paper
14560, University Library of Munich, Germany, revised 28 Mar 2009.
[Downloadable!]
Hobbs, Jill E., 2003.
"Consumer Demand For Traceability ,"
Working Papers
14614, International Agricultural Trade Research Consortium.
[Downloadable!]
Goldsmith, Peter & Turan, Nesve A. & Gow, Hamish, 2004.
"Firms, Incentives, And The Supply Of Food Safety: A Formal Model Of Government Enforcement ,"
2004 Annual meeting, August 1-4, Denver, CO
20343, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Zeynep Hansen & Marc T. Law, 2006.
"The Political Economy of "Truth-in-Advertising" Regulation During the Progressive Era ,"
NBER Working Papers
11927, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Saak, Alexander E., 2003.
"Identity Preservation And False Non-Gmo Labeling In The Food Supply Chain ,"
2003 Annual meeting, July 27-30, Montreal, Canada
22182, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Anders, Sven & Monteiro, Diogo M. Souza & Rouviere, Elodie, 2007.
"Objectiveness in the Market for Third-Party Certification: Does market structure matter? ,"
105th Seminar, March 8-10, 2007, Bologna, Italy
7894, European Association of Agricultural Economists.
[Downloadable!]
Saak, Alexander E., 2002.
"Identity Preservation and False Labeling in the Food Supply Chain ,"
Staff General Research Papers
2062, Iowa State University, Department of Economics.
[Downloadable!]
Wang, Qingbin & Sun, Junjie, 2003.
"Consumer Preference And Demand For Organic Food: Evidence From A Vermont Survey ,"
2003 Annual meeting, July 27-30, Montreal, Canada
22080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Athearn, Kevin R., 2003.
"Can Eco-Labeling Do More Harm Than Good? A Comparative Statics Analysis ,"
2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama
35105, Southern Agricultural Economics Association.
[Downloadable!]
Gilles Grolleau & Julie A. Caswell, 2005.
"Interaction Between Food Attributes in Markets: The Case of Environmental Labeling ,"
Working Papers
2005-5, University of Massachusetts Amherst, Department of Resource Economics.
[Downloadable!]
Other versions: Schulze, Holger & Albersmeier, Friederike & Spiller, Achim & Jahn, Gabriele, 2006.
"Audit risk factors in certification: How can risk-oriented audits improve the quality of certification standards? ,"
98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece
10108, European Association of Agricultural Economists.
[Downloadable!]
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This page was last updated on 2009-11-26.
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