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The Informational and signaling impacts of labels: Experimental evidence from India on GM foods

Author

Listed:
  • Bharat Ramaswami

    () (Indian Statistical Institute, New Delhi)

  • Sangeeta Bansal

    () (Centre for International Trade and Development, JNU, New Delhi)

  • Sujoy Chakravarty

    () (Centre for Economic Studies and Planning, JNU, New Delhi)

Abstract

Much of the debate between the European and U.S. positions about labeling of genetically modified foods has been whether consumers perceive labels as a source of information or a signal to change behavior. In this paper, we provide an experimental framework for examining these roles of information and signaling. While previous studies have focused on the impact of labels on consumer behavior, our interest is also what happens prior to the expression of aversion to GM-labeled foods. In particular, the experiment design allows the researcher to estimate a lower bound of the informational impact of labels on GM food aversion. The other novel feature of this paper is that unlike earlier studies, it uses subjects from a developing country.

Suggested Citation

  • Bharat Ramaswami & Sangeeta Bansal & Sujoy Chakravarty, 2013. "The Informational and signaling impacts of labels: Experimental evidence from India on GM foods," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 13-01, Indian Statistical Institute, New Delhi, India.
  • Handle: RePEc:ind:isipdp:13-01
    as

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    File URL: http://www.isid.ac.in/~pu/dispapers/dp13-01.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Genetically modified foods; experimental methods; informational impact of labels; signaling impact of labels;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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