If You Can't Trust the Farmer, Who Can You Trust? The Effect of Certification Types on Purchases of Organic Produce
AbstractAn information asymmetry exists in the market for organic produce since consumers cannot determine whether produce is organically or conventionally grown. Various methods may solve this problem including signaling, reputation, and certification. Signaling and reputation may not work well, because signals are noisy, and reputation may be difficult for a producer to establish. Certification of the farm and its growing methods shows the most promise. A survey instrument testing the efficacy of certification is presented along with empirical analysis suggesting that no notable difference existed between independent certification methods, although independent certification had significantly different effects than self-certification.
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Bibliographic InfoPaper provided by Utah State University, Department of Economics in its series Working Papers with number 2002-18.
Length: 26 pages
Date of creation: Nov 2002
Date of revision:
asymmetric information; certification; ordered probit; organic produce;
Other versions of this item:
- Ward, Ruby A. & Hunnicutt, Lynn & Keith, John E., 2004. "If You Can't Trust the Farmer, Who Can You Trust? The Effect of Certification Types on Purchases of Organic Produce," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 7(01).
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