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Regulation, Living Cost, and Economic Welfare: a Comparative Analysis of Japanese and U.S. Food Labeling Systems

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  • Furuya, K.
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    Abstract

    This paper explores the positive and normative effects of regulations governing the disclosure of product information. As an example, a Japanese food labeling system which requires explicit display of expiration dates is compared with a U.S. system which permits the encoding of expiration dates. The paper shows that, when the sellers cannot price-discriminate items with different shelf ages, the Japanese system will lead to a greater amount of wastage and a higher price that the U.S. system. The welfare ranking is generally indeterminate, but the Japanese system could sometimes yield lower economic welfare by interacting with the pre-existing price distortions.

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    Bibliographic Info

    Paper provided by California Irvine - School of Social Sciences in its series Papers with number 99-00-26.

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    Length: 31 pages
    Date of creation: 2000
    Date of revision:
    Handle: RePEc:fth:calirv:99-00-26

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    Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.

    Related research

    Keywords: FOOD ; LABELLING ; CONSUMPTION ; INFORMATION ; SOCIAL POLICY;

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