Should the United States Regulate Mandatory Labeling for Genetically Modified Foods?
AbstractPublic debate continues over whether the United States should regulate genetically modified (GM) foods by imposing a mandatory labeling policy. This paper develops a model that shows that a voluntary GM-labeling policy results in higher welfare than a regulated mandatory GM-labeling policy, if consumers can accurately read the signals in each market. We then develop an experiment that shows consumers behave as if they can accurately identify signals for GM foods. Our model and results support the perspective that the United States has been prudent in fending off calls for regulations demanding a mandatory GM-labeling policy.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10047.
Date of creation: 30 Oct 2002
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genetically modified foods; laboratory auctions; vegetable oil; tortilla chips; russet potatoes; mandatory labeling; voluntary labeling; nth-price auction;
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