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Welfare Gains from Quality Certification of Infant Foods: Results from a Market Experiment in Mali

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  • William A. Masters
  • Diakalia Sanogo

Abstract

In low-income countries, malnutrition is often most severe among infants of six to twenty-four months. They need higher-density foods than the family diet, but density is a credence attribute. We hypothesize that the premium now paid for heavily advertised brands reflects demand for quality assurance, which could be provided at lower cost to competing firms through third-party certification. We use a new market experiment to find that mothers' average willingness-to-pay for certification is about $1.75/kg, or four times its cost, so that total economic-surplus gains from introducing certification to Mali would be on the order of $1 million annually. Copyright 2002, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/1467-8276.00361
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 84 (2002)
Issue (Month): 4 ()
Pages: 974-989

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Handle: RePEc:oup:ajagec:v:84:y:2002:i:4:p:974-989

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References

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  1. Smith, Lisa C. & Haddad, Lawrence James, 2000. "Explaining child malnutrition in developing countries: a cross-country analysis," Research reports 111, International Food Policy Research Institute (IFPRI).
  2. Penders, Christopher L. & Staatz, John M. & Tefft, James F., 2000. "How does Agricultural Development Affect Child Nutrition in Mali?," Food Security International Development Policy Syntheses 11313, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August.
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Cited by:
  1. Marette, Stéphan & Roosen, Jutta & Blanchemanche, Sandrine & Feinblatt-Mélèze, Eve, 2010. "Functional food, uncertainty and consumers' choices: A lab experiment with enriched yoghurts for lowering cholesterol," Food Policy, Elsevier, vol. 35(5), pages 419-428, October.
  2. Trenton Smith & Hayley Chouinard & Philip Wandschneider, 2009. "Waiting for the Invisible Hand: Novel Products and the Role of Information in the Modern Market for Food," Working Papers 2009-07, School of Economic Sciences, Washington State University.
  3. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008. "Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption," Journal of Regulatory Economics, Springer, vol. 34(2), pages 119-143, October.
  4. Marette, Stéphan & Roosen, Jutta & Blanchemanche, Sandrine, 2008. "Health information and substitution between fish: Lessons from laboratory and field experiments," Food Policy, Elsevier, vol. 33(3), pages 197-208, June.
  5. Jutta Roosen & Stephan Marette & Sandrine Blanchemanche, 2010. "Value Elicitation using BDM and a Discrete Choice Mechanism," Economics Bulletin, AccessEcon, vol. 30(2), pages 1554-1563.
  6. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2011. "The Combination of Lab and Field Experiments for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 2.
  7. Trenton Smith & Hayley Chouinard & Philip Wandschneider, 2009. "Waiting for the Invisible Hand: Market Power and Endogenous Information in the Modern Market for Food," Working Papers 2009-07, School of Economic Sciences, Washington State University.
  8. Lybbert, Travis J. & Magnan, Nicholas & Spielman, David J. & Bhargava, Anil K. & Gulati, Kajal, 2012. "Farmers' Heterogeneous Valuation of Laser Land Leveling in Eastern Uttar Pradesh: An Experimental Auction Approach to Informing Segmentation & Subsidy Strategies," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126806, International Association of Agricultural Economists.
  9. Ifft, Jennifer & Roland-Holst, David W. & Zilberman, David, 2009. "Valuation of Safety-Branded and Traceable Free Range Chicken in Ha Noi: Results from a Field Experiment," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49444, Agricultural and Applied Economics Association.
  10. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.
  11. Stéphan Marette & Jayson L. Lusk & Jutta Roosen, 2010. "Welfare Impact of Information with Experiments: The Crucial Role of the Price Elasticity of Demand," Economics Bulletin, AccessEcon, vol. 30(2), pages 1585-1593.

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