Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects

Journal of Agricultural and Resource Economics

关键词: asymmetric information;    food markets;    labeling;    market power;    vertical differentiation;    welfare effects;   

DOI  :  10.22004/ag.econ.31143

来源: DOAJ

【 摘 要 】

This study considers the welfare impact of labeling policies of agricultural commodities with specific characteristics. Using a model of vertical differentiation, the effects on equilibrium and welfare levels are calculated. The introduction of the regulation and the emergence of two differentiated competitive markets leaves consumers and high-quality producers better off, while low-quality producers are worse off. With high costs and low quality differences, the total welfare impact of the regulation can be negative. Findings show that when high-quality producers can exercise market power, the regulation could be more easily accepted by producers, but it would have a negative effect on consumers.

【 授权许可】

Unknown