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How Cognitive Biases Can Affect the Performance of Eco-Labeling Schemes

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  • Beretti Antoine

    (INRA)

  • Grolleau Gilles

    (INRA)

  • Mzoughi Naoufel

    (INRA)

Abstract

Individuals exhibit systematic cognitive biases which make their behavior 'deviant' when compared to the benchmark of perfectly rational individuals. The person's tendency to make errors in judgment based on cognitive factors, are thought to be based upon heuristics and lead to decisions that are sub-optimal. Ignoring cognitive biases can affect diverse dimensions of eco-labeling policies and lead to flawed prescriptions. We review several cognitive biases that affect eco-labeling related behaviors and show how taking them into account allows a better understanding of eco-labeling schemes and informs policy makers in order to design and implement more effective eco-labeling policies.

Suggested Citation

  • Beretti Antoine & Grolleau Gilles & Mzoughi Naoufel, 2009. "How Cognitive Biases Can Affect the Performance of Eco-Labeling Schemes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-13, December.
    • Handle: RePEc:bpj:bjafio:v:7:y:2009:i:2:n:10
    DOI: 10.2202/1542-0485.1276
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    Citations

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    Cited by:

    1. Gilles Grolleau & Lisette Ibanez & Naoufel Mzoughi & Mario Teisl, 2016. "Helping eco-labels to fulfil their promises," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 792-802, August.
    2. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2019. "Does advertising the green benefits of products contribute to sustainable development goals? A quasi‐experimental test of the dilution effect," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 786-793, July.
    3. Laure Bamière & Pierre‐Alain Jayet & Salomé Kahindo & Elsa Martin, 2021. "Carbon sequestration in French agricultural soils: A spatial economic evaluation," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 301-316, March.
    4. Bhagyashree Katare & H. Holly Wang & Jonathan Lawing & Na Hao & Timothy Park & Michael Wetzstein, 2020. "Toward Optimal Meat Consumption," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 662-680, March.
    5. Daunfeldt, Sven-Olov & Rudholm, Niklas, 2014. "Does shelf-labeling of organic foods increase sales? Results from a natural experiment," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 804-811.
    6. Beretti, Antoine & Figuières, Charles & Grolleau, Gilles, 2013. "Behavioral innovations: The missing capital in sustainable development?," Ecological Economics, Elsevier, vol. 89(C), pages 187-195.

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