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Economics Of Food Labeling

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Author Info
Golan, Elise
Kuchler, Fred
Mitchell, Lorraine
Abstract

Federal intervention in food labeling is often proposed with the aim of achieving a social goal such as improving human health and safety, mitigating environmental hazards, averting international trade disputes, or supporting domestic agricultural and food manufacturing industries. Economic theory suggests, however, that mandatory food-labeling requirements are best suited to alleviating problems of asymmetric information and are rarely effective in redressing environmental or other spillovers associated with food production and consumption. Theory also suggests that the appropriate role for government in labeling depends on the type of information involved and the level and distribution of the costs and benefits of providing that information. This report traces the economic theory behind food labeling and presents three case studies in which the government has intervened in labeling and two examples in which government intervention has been proposed.

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Publisher Info
Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 34069.

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Date of creation: 2000
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Handle: RePEc:ags:uerser:34069

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Related research
Keywords: labeling; information policy; Nutrition Labeling and Education Act; dolphin-safe tuna; national organic standards; country-of-origin labels; biotech food labeling; Food Consumption/Nutrition/Food Safety;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mojduszka, Eliza M & Caswell, Julie A, 2000. " A Test of Nutritional Quality Signaling in Food Markets Prior to Implementation of Mandatory Labeling," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 298-309, May. [Downloadable!] (restricted)
  2. Steve Salop, 1976. "Information and monopolistic competition," Special Studies Papers 74, Board of Governors of the Federal Reserve System (U.S.).
  3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr. [Downloadable!] (restricted)
  4. Elitzak, Howard, 1999. "Food Cost Review, 1950-97," Agricultural Economics Reports 34053, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  5. Moschini, Giancarlo & Lapan, Harvey & Sobolevsky, Andrei, 2000. "Roundup Ready Soybeans and Welfare Effects in the Soybean Complex," Staff General Research Papers 1799, Iowa State University, Department of Economics.
  6. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  7. Gordon Tullock, 1975. "The Transitional Gains Trap," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 671-678, Autumn. [Downloadable!] (restricted)
  8. Salop, Steven, 1976. "Information and Monopolistic Competition," American Economic Review, American Economic Association, vol. 66(2), pages 240-45, May. [Downloadable!] (restricted)
  9. Wesley A. Magat & W. Kip Viscusi, 1992. "Informational Approaches to Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 026213277x.
  10. Pauline M. Ippolito & Alan D. Mathios, 1990. "Information, Advertising and Health Choices: A Study of the Cereal Market," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 459-480, Autumn. [Downloadable!] (restricted)
  11. Ippolito, Pauline M & Mathios, Alan D, 1995. "Information and Advertising: The Case of Fat Consumption in the United States," American Economic Review, American Economic Association, vol. 85(2), pages 91-95, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December. [Downloadable!]
    Other versions:
  2. Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Should the United States Regulate Mandatory Labeling for Genetically Modified Foods?," Staff General Research Papers 10047, Iowa State University, Department of Economics. [Downloadable!]
  3. Konduru, Srinivasa & Kalaitzandonakes, Nicholas & Magnier, Alexandre, 2009. "GMO Testing Strategies and Implications for Trade: A Game Theoretic Approach," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49594, Agricultural and Applied Economics Association. [Downloadable!]
  4. Chung, Chanjin & Zhang, Tong & Peel, Derrell, 2004. "Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?," 2004 Annual meeting, August 1-4, Denver, CO 19934, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Lapan, Harvey E. & Moschini, GianCarlo, 2002. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," Staff General Research Papers 2109, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  6. Zafiriou, M. & Robbins, L. & Karamchandani, D. & Ominsiki, P., 2003. "Changing Consumer Demand And Its Impact On Canadian Agricultural Policy And Trade," Working Papers 14582, International Agricultural Trade Research Consortium. [Downloadable!]
  7. GianCarlo Moschini & Harun Bulut & Luigi Cembalo, 2005. "On the Segregation of Genetically Modified, Conventional, and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis," Center for Agricultural and Rural Development (CARD) Publications 05-wp411, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  8. Maze, Armelle, 2005. "Integrated Agriculture Labelling and consumer information: retailer's strategies and regulatory issues in the European context," 2005 Annual meeting, July 24-27, Providence, RI 19175, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  9. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Eaton, D.J.F. & Bourgeois, J. & Achterbosch, T.J., 2005. "Product differentiation under the WTO; An analysis of labelling and tariff or tax measures concerning farm animal welfare," Report Series 29123, Agricultural Economics Research Institute. [Downloadable!]
  11. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Should The United States Initiate A Mandatory Labeling Policy For Genetically Modified Foods?," 2002 Annual meeting, July 28-31, Long Beach, CA 19857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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