IDEAS home Printed from https://ideas.repec.org/a/prs/ecoprv/ecop_0249-4744_2008_num_182_1_7753.html
   My bibliography  Save this article

Marchés avec coûts d'information sur la qualité des biens : une application aux produits écolabellisés

Author

Listed:
  • Virginie Piguet
  • Douadia Bougherara

Abstract

[eng] Market-failure theory is often used to argue that eco-labeling is a way of increasing market efficiency. We show that, because of additional costs, this may not always be true. We identify three types of information costs regarding quality that may arise with an eco-label. We then measure the market’s ability to provide high-quality goods and buyers’ behavior toward information purchase in laboratory posted-offer markets with varying information costs. We find that markets with information costs are inefficient. For sellers, the probability of offering high-quality goods increases with expected profits but decreases with information costs. For buyers, even low information costs imply a significant surplus loss. We conclude that the function linking information purchase and product price is non-linear and depends on buyers’ beliefs about the relationship between product prices and quality. The design of eco-labels thus plays a crucial role in their success. [fre] La théorie des défaillances de marché est souvent utilisée pour montrer que les labels sur des biens de croyance augmentent l'efficacité des transactions. Or, ils peuvent avoir l’effet inverse en introduisant des coûts supplémentaires. Nous identifions trois sources potentielles de coûts d’information sur la qualité environnementale des biens. Ensuite, nous montrons expérimentalement l’inefficacité des marchés en présence de ces coûts. Pour les vendeurs, la probabilité de proposer de la qualité supérieure augmente avec l’espérance de gain et diminue avec les coûts d’information. Pour les acheteurs, même un coût faible réduit considérablement les surplus. Leur probabilité de demander l’information sur la qualité dépend du prix des unités dans une relation non linéaire, fonction des croyances sur la relation entre prix et qualité. Ainsi, la manière concrète dont l’écolabel est conçu joue un rôle crucial dans son succès.

Suggested Citation

  • Virginie Piguet & Douadia Bougherara, 2008. "Marchés avec coûts d'information sur la qualité des biens : une application aux produits écolabellisés," Économie et Prévision, Programme National Persée, vol. 182(1), pages 77-96.
  • Handle: RePEc:prs:ecoprv:ecop_0249-4744_2008_num_182_1_7753
    Note: DOI:10.3406/ecop.2008.7753
    as

    Download full text from publisher

    File URL: https://doi.org/10.3406/ecop.2008.7753
    Download Restriction: no

    File URL: https://www.persee.fr/doc/ecop_0249-4744_2008_num_182_1_7753
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    2. Loader, Rupert & Hobbs, Jill E., 1999. "Strategic responses to food safety legislation," Food Policy, Elsevier, vol. 24(6), pages 685-706, December.
    3. Douadia Bougherara & Gilles Grolleau, 2004. "L'éco-étiquetage des produits est-il crédible ? Proposition d'un cadre d'analyse," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(3), pages 369-390.
    4. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
    5. Charles N. Noussair & Charles R. Plott & Raymond G. Riezman, 2013. "An Experimental Investigation of the Patterns of International Trade," World Scientific Book Chapters,in: International Trade Agreements and Political Economy, chapter 17, pages 299-328 World Scientific Publishing Co. Pte. Ltd..
    6. Gary Charness & Martin Dufwenberg, 2006. "Promises and Partnership," Econometrica, Econometric Society, vol. 74(6), pages 1579-1601, November.
    7. Jeffrey R. Blend & Eileen O. van Ravenswaay, 1999. "Measuring Consumer Demand for Ecolabeled Apples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1072-1077.
    8. Miller, Ross M & Plott, Charles R, 1985. "Product Quality Signaling in Experimental Markets," Econometrica, Econometric Society, vol. 53(4), pages 837-872, July.
    9. Cason, Timothy N. & Gangadharan, Lata, 2002. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 113-134, January.
    10. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
    11. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    12. Grossman, Sanford J & Stiglitz, Joseph E, 1980. "On the Impossibility of Informationally Efficient Markets," American Economic Review, American Economic Association, vol. 70(3), pages 393-408, June.
    13. Brannon, James I. & Gorman, Michael F., 2002. "The effects of information costs on search and convergence in experimental markets," Journal of Economic Behavior & Organization, Elsevier, vol. 47(4), pages 375-390, April.
    14. Claudia Keser & Marc Willinger, 2000. "La théorie des contrats dans un contexte expérimental : un survol des expériences sur les relations « principal-agent »," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 237-253.
    15. Kihlstrom, Richard, 1974. "A general theory of demand for information about product quality," Journal of Economic Theory, Elsevier, vol. 8(4), pages 413-439, August.
    16. Timothy Van Zandt, 2004. "Information Overload in a Network of Targeted Communication," RAND Journal of Economics, The RAND Corporation, vol. 35(3), pages 542-560, Autumn.
    17. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    18. McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-9, April.
    19. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    20. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
    21. Wanki Moon & Wojciech J. Florkowski & Bernhard Brückner & Ilona Schonhof, 2002. "Willingness to Pay for Environmental Practices: Implications for Eco-Labeling," Land Economics, University of Wisconsin Press, vol. 78(1), pages 88-102.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bougherara Douadia & Piguet Virginie, 2009. "Market Behavior with Environmental Quality Information Costs," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-28, December.
    2. Frédéric Salladarré & Patrice Guillotreau & Claire-Marine Lesage & Pierrick Ollivier, 2013. "Les préférences des consommateurs pour un écolabel. Le cas des produits de la mer en France," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 94(3), pages 339-363.
    3. Salladarré Frédéric & Guillotreau Patrice & Perraudeau Yves & Monfort Marie-Christine, 2010. "The Demand for Seafood Eco-Labels in France," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-26, December.
    4. Eline Jongmans & Alain Jolibert & Julie Irwin, 2014. "Toujours plus, toujours mieux ? Effet contre-intuitif de l'évaluation des attributs environnementaux du produit par le consommateur," Post-Print halshs-01185784, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prs:ecoprv:ecop_0249-4744_2008_num_182_1_7753. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Equipe PERSEE). General contact details of provider: https://www.persee.fr/collection/ecop .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.