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WELFARE EFFECTS OF ECO-LABEL PROLIFERATION: TOO MUCH OF A GOOD THING? AgEcon
Lohr, Luanne.
Given that existing food eco-labels are still not well defined in consumers' experience, there is potential for new labels to generate more confusion. Consumers incur fixed costs to learn about a label's meaning. Market shares for existing certifications may be eroded by perceptions that new products are good substitutes for them. The eco-label certifier must respond with information that reduces these costs or lose consumer and producer confidence in the label. Using a model of spatial competition in attribute space, the effect of search costs and educational expenditures on market share and price for competing certifiers is simulated. The results show that educational spending and/or improvements in efficiency of educational spending increase market...
Tipo: Working or Discussion Paper Palavras-chave: Eco-labeling; Market segmentation; Organic agriculture; Product differentiation; Search costs; Simulation; Spatial competition; Environmental Economics and Policy; Marketing.
Ano: 1998 URL: http://purl.umn.edu/16642
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