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Milk by Any Other Name … Consumer Benefits from Labeled Milk

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  • Tirtha Dhar
  • Jeremy D. Foltz

Abstract

This article uses revealed preferences of consumers to study the consumer benefits from rBST-free and organic labeled milk. The article specifies and estimates a quadratic AIDS demand system model for different milk types using U.S. supermarket scanner data. The introduction of rBST-free and organic milk is used to estimate consumer benefits that are decomposed into two components, competitive and variety effects. Results show significant consumer benefits from organic milk and to a lesser extent from rBST-free milk. Based on the findings, we explore implications for present U.S. labeling standards. Copyright 2005, Oxford University Press.

Suggested Citation

  • Tirtha Dhar & Jeremy D. Foltz, 2005. "Milk by Any Other Name … Consumer Benefits from Labeled Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 214-228.
    • Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:214-228
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    File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00713.x
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