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Interaction Between Food Attributes in Markets: The Case of Environmental Labeling

Author

Listed:
  • Gilles Grolleau

    () (Centre d’Economie et Sociologie appliquées à l’Agriculture et aux Espaces Ruraux)

  • Julie A. Caswell

    () (Department of Resource Economics, University of Massachusetts Amherst)

Abstract

Some consumers derive utility from using products produced with specific processes, such as environmentally friendly practices. Means of verifying these credence attributes, such as certification, are necessary for the market to function effectively. A substitute or complementary solution may exist when consumers perceive a relationship between a process attribute and other verifiable product attributes. We present a model where the level of search and experience attributes influences the likelihood of production of eco-friendly products. Our results suggest that the market success of ecofriendly food products requires a mix of environmental and other verifiable attributes that together signal credibility.

Suggested Citation

  • Gilles Grolleau & Julie A. Caswell, 2005. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Working Papers 2005-5, University of Massachusetts Amherst, Department of Resource Economics.
  • Handle: RePEc:dre:wpaper:2005-5
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    environmental labeling; food attributes; food marketing; quality perception;

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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