Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects

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Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects

Author Info

Zago, Angelo M.
Pick, Daniel

Additional information is available for the following registered author(s):

Angelo Zago

Abstract

This study considers the welfare impact of labeling policies of agricultural commodities with specific characteristics. Using a model of vertical differentiation, the effects on equilibrium and welfare levels are calculated. The introduction of the regulation and the emergence of two differentiated competitive markets leaves consumers and high-quality producers better off, while low-quality producers are worse off. With high costs and low quality differences, the total welfare impact of the regulation can be negative. Findings show that when high-quality producers can exercise market power, the regulation could be more easily accepted by producers, but it would have a negative effect on consumers.

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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 29 (2004)
Issue (Month): 01 (April)
Pages:
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Handle: RePEc:ags:jlaare:31143

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Web page: http://waeaonline.org/
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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.:

Jean-Christophe Bureau & Estelle Gozlan & Stephan Marette, 2001. "Quality Signaling and International Trade in Food Products," Food and Agricultural Policy Research Institute (FAPRI) Publications 01-wp283, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
Other versions:
- J.-C. Bureau & E. Gozlan & S. Marette, 1999. "Quality signaling and international trade in food products," THEMA Working Papers 99-13, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
- Bureau, Jean-Christophe & Gozlan, Estelle & Marette, Stephan, 2001. "Quality Signaling and International Trade in Food Products," Staff General Research Papers 2002, Iowa State University, Department of Economics. [Downloadable!]
- Bureau, J.-C. & Gozlan, E. & Marette, S., 1999. "Quality Signaling and International Trade in Food Products," Papers 99-13, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Jean-Christophe Bureau & Estelle Gozlan & Stephan Marette, 2001. "Quality Signaling and International Trade in Food Products," Center for Agricultural and Rural Development (CARD) Publications 01-wp283, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Dermot J. Hayes & Sergio H. Lence & Andrea Stoppa, 2003. "Farmer-Owned Brands?," Center for Agricultural and Rural Development (CARD) Publications 02-bp39, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Other versions:
- Hayes, Dermot J. & Lence, Sergio H. & Stoppa, Andrea, 2004. "Farmer-Owned Brands?," Staff General Research Papers 11285, Iowa State University, Department of Economics.
- Hayes, Dermot J. & Lence, Sergio H., 2007. "Farmer-Owned Brands?," Staff General Research Papers 12707, Iowa State University, Department of Economics.

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.)

Sergio H. Lence & Stephan Marette & Dermot J. Hayes & William E. Foster, 2006. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Center for Agricultural and Rural Development (CARD) Publications 06-mwp9, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Other versions:
- Lence, Sergio H. & Marette, Stephan & Hayes, Dermot J. & Foster, William, 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Staff General Research Papers 12758, Iowa State University, Department of Economics. [Downloadable!]
- Sergio H. Lence & Stephan Marette & Dermot J. Hayes & William E. Foster, 2006. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications 06-mwp9, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University. [Downloadable!]
- Lence, Sergio H. & Marette, Stéphan & Hayes, Dermot J. & Foster, William, 2006. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Staff General Research Papers 12632, Iowa State University, Department of Economics. [Downloadable!]
- Sergio H. Lence & Stephan Marette & Dermot J. Hayes & William E. Foster, 2006. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-mwp9, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
- Sergio H. Lence & Stéphan Marette & Dermot J. Hayes & William Foster, 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(4), pages 947-963, November. [Downloadable!] (restricted)

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