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Consumer purchasing decisions and welfare under country of origin. Labelling regulation AgEcon
Awada, Lana; Yiannaka, Amalia.
This study develops a theoretical framework of heterogeneous consumer preferences to examine the effect of voluntary and mandatory country of origin labeling (COOL) on consumer purchasing decisions and welfare when consumers view COOL information as an attribute that differentiates products vertically and horizontally. Analytical results of both the vertically and horizontally differentiated product models show that the change from a no COOL to a mandatory COOL regime decreases (increases) the welfare of consumers with weak (strong) preference for COOL. A change from a no COOL to a voluntary COOL regime leads to an undisputed increase in consumer welfare which results from an increase in the welfare of consumers with strong preference for COOL, while the...
Tipo: Conference Paper or Presentation Palavras-chave: Country of origin labeling; Heterogeneous consumer preferences; Vertical and horizontal product differentiation.; Consumer/Household Economics.
Ano: 2006 URL: http://purl.umn.edu/10038
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