A Simple Model Of Voluntary Vs Mandatory Labelling Of Gmos
We consider the welfare impact of the mandatory and voluntary labelling to inform consumers on GMOs content in foods. With a model of vertical differentiation in competitive markets, we evaluate the effects on price equilibrium and welfare levels. We find that the mandatory labelling scheme would be optimal in those countries with more GMO-averse consumers and no-GMOs practices producers. Voluntary labelling would instead optimally be chosen in those countries where producers are using GMOs and consumers are more concerned about the costs savings resulting in this technology adoption.
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- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
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"Using Informational Labeling To Influence The Market For Quality In Food Products,"
25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- 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.
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