Consumer's Resistance to Genetically Modified Foods: The Role of Information in an Uncertain Environment
AbstractGenetically modified (GM) foods have been engulfed in considerable controversy, and the early optimism has been dampened. Information issueslabeling and asymmetric informationare central to the GM-food debate. Furthermore, it is important to understand the reaction in developed countries to GM-foods because they set the tone of the world market in grains, oilseeds, and animal products. New results are reported from a statistical analysis of the market characteristics that push consumers in a high-income country to resist GM foods, with an emphasis on negative information from environmental groups and third-party, verifiable information, which could neutralize private information distributed by interested parties. A unique sample of adult consumers participated in laboratory auctions of three food products with randomized labeling and information treatments. A key finding is that GM information supplied by environmental groups increases the probability that consumers are out of the market for GM-foods. Third-party verifiable information, however, dissipates most of the negative effect of the environmental group perspective. Selective adoption of GM crops seems likely to raise world welfare but Western Europes banning of GM imports and technology will largely affect them negatively.
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Bibliographic InfoArticle provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.
Volume (Year): 2 (2004)
Issue (Month): 2 (May)
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Web page: http://www.degruyter.com
Other versions of this item:
- Huffman, Wallace E. & Rousu, M.C. & Shogren, Jason F. & Tegene, Abebayehu, 2004. "Consumers' Resistance to Genetically Modified Foods: The Role of Information in an Uncertain Environment," Staff General Research Papers 12339, Iowa State University, Department of Economics.
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- Bharat Ramaswami & Sangeeta Bansal & Sujoy Chakravarty, 2013. "The Informational and signaling impacts of labels: Experimental evidence from India on GM foods," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 13-01, Indian Statistical Institute, New Delhi, India.
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