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Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food

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  • Lusk, Jayson L.
  • Rozan, Anne

Abstract

When individuals have limited information and are uncertain about the quality of a good, government policy, or the lack thereof, can serve as a signal to consumers about the likelihood of realizing alternatives states of nature. In this paper, we focus on a controversial beliefs about government intervention: the market for genetically modified food. Data from a mail survey were used to estimate an econometric model where beliefs about labeling policy, beliefs about the safety of genetically modified food, and willingness to consume genetically modified food are endogenously determined. Results indicate that consumers who believe the government has a mandatory labeling policy for genetically modified food are more likely to believe genetically modified food is unsafe than consumers who believe no such policy is in place.

Suggested Citation

  • Lusk, Jayson L. & Rozan, Anne, 2008. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), August.
  • Handle: RePEc:ags:jlaare:42460
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lee L. Schulz & Glynn T. Tonsor, 2010. "Cow-Calf Producer Preferences for Voluntary Traceability Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 138-162.
    2. Henseleit, Meike & Kubitzki, Sabine, 2009. "‘GMO-Free’ Labels – Enhancing Transparency or Deceiving Consumers?," 2009 Conference, August 16-22, 2009, Beijing, China 51029, International Association of Agricultural Economists.
    3. Bansal, Sangeeta & Chakravarty, Sujoy & Ramaswami, Bharat, 2013. "The informational and signaling impacts of labels: experimental evidence from India on GM foods," Environment and Development Economics, Cambridge University Press, vol. 18(06), pages 701-722, December.
    4. Jin, Hyun Joung & Han, Dae Hee, 2014. "Interaction between message framing and consumers’ prior subjective knowledge regarding food safety issues," Food Policy, Elsevier, vol. 44(C), pages 95-102.
    5. Liaukonyte, Jura & Streletskaya, Nadia & Kaiser, Harry, 2015. "Noisy Information Signals and Endogenous Preferences for Labeled Attributes," 2015 Conference, August 9-14, 2015, Milan, Italy 211823, International Association of Agricultural Economists.
    6. Costanigro, Marco & Lusk, Jayson L., 2014. "The signaling effect of mandatory labels on genetically engineered food," Food Policy, Elsevier, vol. 49(P1), pages 259-267.

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