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Milk by Any Other Name … Consumer Benefits from Labeled Milk

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  • Tirtha Dhar
  • Jeremy D. Foltz
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    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.

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    File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00713.x
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    Bibliographic Info

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

    Volume (Year): 87 (2005)
    Issue (Month): 1 ()
    Pages: 214-228

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    Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:214-228

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    Cited by:
    1. Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.
    2. Vasiliki Fourmouzi & Margarita Genius & Peter Midmore, 2012. "The Demand for Organic and Conventional Produce in London, UK: A System Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 677-693, 09.
    3. Ubilava, David & Foster, Kenneth A. & Lusk, Jayson L. & Nilsson, Tomas K.H., 2008. "Differences In U.S. Consumer Preferences For Certified Pork Chops When Facing Branded Vs. Non-Branded Choices," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Some Economic Benefits and Costs of Vegetarianism," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    5. Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), March.
    6. Sun, Shaoyan & An, Henry, 2013. "Reputation and Multiproduct-firm Behavior: Product Line and Price Rivalry Among Retailers," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151146, Agricultural and Applied Economics Association.
    7. Yuan, Yan & Capps, Oral, Jr. & Nayga, Rodolfo M., Jr., 2009. "Assessing the Demand for a Functional Food Product: Is There Cannibalization in the Orange Juice Category?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    8. Kristine M. Grimsrud & Robert P. Berrens & Ron C. Mittelhammer, 2006. "A Mixture Model of Consumers' Intended Purchase Decisions for Genetically Modified Foods," Economics Bulletin, AccessEcon, vol. 3(23), pages 1-11.
    9. repec:ags:jrapmc:122316 is not listed on IDEAS
    10. Arabatzis, Garyfallos & Klonaris, Stathis, 2009. "An analysis of Greek wood and wood product imports: Evidence from the linear quadratic aids," Forest Policy and Economics, Elsevier, vol. 11(4), pages 266-270, July.
    11. Rickard, Bradley J. & Schmit, Todd M. & Gomez, Miguel I. & Lu, Hao, 2011. "Does the Name Matter? Developing Brands for Patented Fruit Varieties," Working Papers 126603, Cornell University, Department of Applied Economics and Management.
    12. Bonnet, Céline & Bouamra-Mechemache, Zohra, 2014. "Organic label, bargaining power, and profit sharing in the French fluid milk market," TSE Working Papers 14-493, Toulouse School of Economics (TSE).
    13. Toshinobu Matsuda, 2006. "Linear approximations to the quadratic almost ideal demand system," Empirical Economics, Springer, vol. 31(3), pages 663-675, September.
    14. Schroeck, Rebecca, 2011. "A Demand System Analysis of Organic and Conventional Fresh Milk in Germany Segmented by Consumer Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115995, European Association of Agricultural Economists.

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