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Consumer Welfare and the Loss Induced by Withheld Information: The Case of BSE in Italy

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  • Mazzocchi, Mario
  • Stefani, Gianluca

Abstract

The paper develops a measure of consumer welfare losses associated with withheld information about BSE linkage with vCJD. food safety. The Cost of Ignorance (COI) is measured by comparing the utility of the informed choice with the utility of the uninformed one, under condition of improved information. Unlike previous work, based on a single equation demand model, the measure is obtained retrieving a cost function from a dynamic Almost Ideal Demand System. The results indicate that Italian consumers bore a significant loss because of the delayed release of information.

Suggested Citation

  • Mazzocchi, Mario & Stefani, Gianluca, 2002. "Consumer Welfare and the Loss Induced by Withheld Information: The Case of BSE in Italy," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24927, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24927
    DOI: 10.22004/ag.econ.24927
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    References listed on IDEAS

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    2. Shepherd, Jonathan D. & Saghaian, Sayed H., 2008. "Consumer Response to Food Safety Events: An Interaction Between Risk Perception and Trust of Information in the Chicken and Beef Markets," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6822, Southern Agricultural Economics Association.
    3. Stefani, Gianluca & Valli, Carlotta, 2004. "Exploring the Impacts of Risk Communication Policies on Welfare: Theoretical Aspects," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24989, European Association of Agricultural Economists.
    4. Radwan, Amr & Gil, Jose Maria & Ben Kaabia, Monia & Serra, Teresa, 2008. "Modeling The Impact Of Food Safety Information On Meat Demand In Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6672, European Association of Agricultural Economists.
    5. Resende Filho, Moises de Andrade & Buhr, Brian L., 2008. "Sobre O Valor Econômico Do Sistema De Identificação Animal Dos Eua (Nais): Notícias A Respeito Do Mau Da Vaca Louca Afetam O Consumo De Carnes?," 46th Congress, July 20-23, 2008, Rio Branco, Acre, Brazil 112719, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    6. Iimi, Atsushi, 2007. "Infrastructure and trade preferences for the livestock sector : empirical evidence from the beef industry in Africa," Policy Research Working Paper Series 4201, The World Bank.

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