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Modelling Reference-Dependent and Labelling Effects in Consumers’ Functional Food Choices

Author

Listed:
  • Zou, Ning Ning (Helen)
  • Hobbs, Jill E.

Abstract

This paper examines the reference-dependent and labelling effects when consumers make choices about functional foods, and explores how changes in reference points could alter individuals’ preferences. Functional food (probiotic yogurt) and regular food (regular yogurt) are used as examples to explore the potential reference-dependent effects and labelling effects. A consumer utility model with reference point effects is developed. The paper also explores how to model the effects of different labelling (health claim) policies, which could influence consumer preferences by changing consumers’ reference points.

Suggested Citation

  • Zou, Ning Ning (Helen) & Hobbs, Jill E., 2008. "Modelling Reference-Dependent and Labelling Effects in Consumers’ Functional Food Choices," Consumer and Market Demand Network Papers 45496, University of Alberta, Department of Resource Economics and Environmental Sociology.
    • Handle: RePEc:ags:ualbnp:45496
    DOI: 10.22004/ag.econ.45496
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    Keywords

    Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
    All these keywords.

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