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Are Fair Trade Goods Credence Goods? A New Proposal, with French Illustrations
[Les produits du Commerce Equitable sont-ils des biens de croyance ?]

Author

Listed:
  • Gaëlle Balineau

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Ivan Dufeu

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes, GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut National de l'Horticulture et du Paysage)

Abstract

In the literature, Fair Trade (FT) goods areusually associated with other products differentiated byprocess attributes such as organic food, genetically mod-ified (GM) food or child labour-free clothing. All of theseproducts are regarded ascredence goods. This classificationrefers to the simplified definition of credence goods,which describes product attributes which consumerscannot evaluate, even after having consumed the good.Focusing on the characteristics of FT goods, this articleproposes a reassessment of the link between FT goods andcredence properties as defined by Darby and Karni. Wefirst demonstrate that (1) the usual classification masksimportant particularities of FT goods compared to othergoods with process attributes and (2) the full definition ofcredence goods may even provide a better description ofthe quality of FT goods. However – and this is our secondtheoretical contribution – the lack of consensus amongexperts concerning FT standards and their level of effi-ciency encourage us to consider FT goods asindeterminategoodsas defined by Lupton. This result leads us to suggesta new typology of product attributes summarized in aninnovative diagram. It sheds light on how competitionbetween the different FT approaches works and why theFT market is still confined to a niche, if not threatenedwith collapse. We mainly illustrate our theoretical analysiswith observations relating to the French FT market andinstitutions.

Suggested Citation

  • Gaëlle Balineau & Ivan Dufeu, 2010. "Are Fair Trade Goods Credence Goods? A New Proposal, with French Illustrations [Les produits du Commerce Equitable sont-ils des biens de croyance ?]," Post-Print hal-02814413, HAL.
  • Handle: RePEc:hal:journl:hal-02814413
    DOI: 10.1007/s10551-010-0577-z
    Note: View the original document on HAL open archive server: https://univ-angers.hal.science/hal-02814413
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    References listed on IDEAS

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    1. Sylvie Lupton, 2005. "Shared quality uncertainty and the introduction of indeterminate goods," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(3), pages 399-421, May.
    2. Patrick Pelsmacker & Wim Janssens, 2007. "A Model for Fair Trade Buying Behaviour: The Role of Perceived Quantity and Quality of Information and of Product-specific Attitudes," Journal of Business Ethics, Springer, vol. 75(4), pages 361-380, November.
    3. Andreas Chatzidakis & Sally Hibbert & Andrew Smith, 2007. "Why People Don’t Take their Concerns about Fair Trade to the Supermarket: The Role of Neutralisation," Journal of Business Ethics, Springer, vol. 74(1), pages 89-100, August.
    4. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    5. Karla Utting, 2009. "Assessing the Impact of Fair Trade Coffee: Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 86(1), pages 127-149, April.
    6. Sandro Castaldo & Francesco Perrini & Nicola Misani & Antonio Tencati, 2009. "The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products," Journal of Business Ethics, Springer, vol. 84(1), pages 1-15, January.
    7. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
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    Cited by:

    1. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working papers of CATT hal-02937865, HAL.
    2. Lemeilleur, Sylvaine & Allaire, Gilles, 2016. "Standardisation and guarantee systems: what can participatory certification offer?," Working Papers MOISA 250275, Institut National de la recherché Agronomique (INRA), UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, Montpellier, France.
    3. Rockenbach, Bettina & Pigors, Mark, 2015. "Consumer Social Responsibility," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113139, Verein für Socialpolitik / German Economic Association.
    4. Reiner, Gerald & Gold, Stefan & Hahn, Rüdiger, 2015. "Wealth and health at the Base of the Pyramid: Modelling trade-offs and complementarities for fast moving dairy product case," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 413-421.
    5. Gaëlle BALINEAU, 2017. "Fair Trade? Yes, but not at Christmas! Evidence from scanner data on real French Fairtrade purchases," Working Paper ab9a0fd1-6ad5-441b-879b-3, Agence française de développement.
    6. Mark Pigors & Bettina Rockenbach, 2016. "Consumer Social Responsibility," Management Science, INFORMS, vol. 62(11), pages 3123-3137, November.
    7. Ruben, Ruerd & Fort, Ricardo, 2012. "The Impact of Fair Trade Certification for Coffee Farmers in Peru," World Development, Elsevier, vol. 40(3), pages 570-582.
    8. Pavel Castka & Charles J. Corbett, 2016. "Governance of Eco-Labels: Expert Opinion and Media Coverage," Journal of Business Ethics, Springer, vol. 135(2), pages 309-326, May.
    9. Florence TOUYA, 2019. "Relationships and Nature of Contracts in the Distribution Structure for Responsible Trade," Working Papers 2018-2019_10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Oct 2019.
    10. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working Papers hal-02937865, HAL.
    11. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working papers of CATT hal-02937902, HAL.
    12. Roy, Rajat & Naidoo, Vik, 2021. "The role of implicit lay belief, SEC attributes and temporal orientation in consumer decision making," Journal of Business Research, Elsevier, vol. 122(C), pages 411-422.
    13. Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
    14. Florence TOUYA, 2019. "Relevance of Potential Supply Structures in Frameworks involving Consumer's private Information: the Case of Fair Trade," Working Papers 2018-2019_12, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2019.
    15. Ivan Dufeu & Jean-Marc Ferrandi & Patrick Gabriel & Marine Le Gall-Ely, 2014. "Socio-environmental multi-labelling and consumer willingness to pay [Multi-labellisation socio-environnementale et consentement à payer du consommateur]," Post-Print hal-02794529, HAL.
    16. Katri Karjalainen & Claire Moxham, 2013. "Focus on Fairtrade: Propositions for Integrating Fairtrade and Supply Chain Management Research," Journal of Business Ethics, Springer, vol. 116(2), pages 267-282, August.
    17. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working Papers hal-02937902, HAL.
    18. Chloé Tankam & Dominique Vollet & Olivier Aznar, 2019. "Between information asymmetry and shared uncertainty, an analysis of organic certification systems for the Kenyan domestic market [Entre asymétrie d'information et incertitude partagée analyse des ," Post-Print hal-02534461, HAL.
    19. Brach, Simon & Walsh, Gianfranco & Shaw, Deirdre, 2018. "Sustainable consumption and third-party certification labels: Consumers’ perceptions and reactions," European Management Journal, Elsevier, vol. 36(2), pages 254-265.

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