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Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food

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  • Lusk, Jayson L.
  • Rozan, Anne

Abstract

When individuals have limited information and are uncertain about the quality of a good, government policy, or the lack thereof, can serve as a signal to consumers about the likelihood of realizing alternatives states of nature. In this paper, we focus on a controversial beliefs about government intervention: the market for genetically modified food. Data from a mail survey were used to estimate an econometric model where beliefs about labeling policy, beliefs about the safety of genetically modified food, and willingness to consume genetically modified food are endogenously determined. Results indicate that consumers who believe the government has a mandatory labeling policy for genetically modified food are more likely to believe genetically modified food is unsafe than consumers who believe no such policy is in place.

Suggested Citation

  • Lusk, Jayson L. & Rozan, Anne, 2008. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-20.
    • Handle: RePEc:ags:jlaare:42460
    DOI: 10.22004/ag.econ.42460
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    Cited by:

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    2. Kubitzki, S. & Henseleit, M. & Herrmann, R., 2010. "Informationsgewinn und Markttransparenz durch Labeling? – Eine kritische Würdigung der neuen Lebensmittelkennzeichnung „Ohne Gentechnik“," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    3. Bansal, Sangeeta & Chakravarty, Sujoy & Ramaswami, Bharat, 2013. "The informational and signaling impacts of labels: experimental evidence from India on GM foods," Environment and Development Economics, Cambridge University Press, vol. 18(6), pages 701-722, December.
    4. Neuhofer, Zachary T. & Lusk, Jayson L., 2021. "Decomposing the Value of Food Labels on Chicken," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 53(2), pages 229-245, May.
    5. Michael J. Weir & Thomas W. Sproul, 2019. "Identifying Drivers of Genetically Modified Seafood Demand: Evidence from a Choice Experiment," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    6. Lee L. Schulz & Glynn T. Tonsor, 2010. "Cow‐Calf Producer Preferences for Voluntary Traceability Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 138-162, February.
    7. Henseleit, Meike & Kubitzki, Sabine, 2009. "‘GMO-Free’ Labels – Enhancing Transparency or Deceiving Consumers?," 2009 Conference, August 16-22, 2009, Beijing, China 51029, International Association of Agricultural Economists.
    8. Carter, Colin Andre & Schaefer, K. Aleks, 2018. "GE Labeling Laws and Segmentation of the Sugar Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 273855, Agricultural and Applied Economics Association.
    9. Diendéré, Achille & Nguyen, Geneviève & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2018. "Modeling the Relationship Between Pesticide Use and Farmers' Beliefs about Water Pollution in Burkina Faso," Ecological Economics, Elsevier, vol. 151(C), pages 114-121.
    10. Schulz, Lee L. & Tonsor, Glynn T., 2010. "Cow-Calf Producer Perceptions Regarding Individual Animal Traceability," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(4), pages 659-677, November.
    11. Liaukonyte, Jura & Streletskaya, Nadia A. & Kaiser, Harry M., 2015. "Noisy Information Signals and Endogenous Preferences for Labeled Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-24, May.
    12. Costanigro, Marco & Lusk, Jayson L., 2014. "The signaling effect of mandatory labels on genetically engineered food," Food Policy, Elsevier, vol. 49(P1), pages 259-267.
    13. D Adeline Yeh & Miguel I Gómez & Harry M Kaiser, 2019. "Signaling impacts of GMO labeling on fruit and vegetable demand," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-16, October.
    14. Thomas, Elizabeth & Fan, Linlin & Stevens, Andrew W., 2020. "Consumer Purchasing Response to Genetically Engineered Labeling," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304523, Agricultural and Applied Economics Association.
    15. Jin, Hyun Joung & Han, Dae Hee, 2014. "Interaction between message framing and consumers’ prior subjective knowledge regarding food safety issues," Food Policy, Elsevier, vol. 44(C), pages 95-102.
    16. Fan, Linlin & Stevens, Andrew W. & Thomas, Betty, 2022. "Consumer purchasing response to mandatory genetically engineered labeling," Food Policy, Elsevier, vol. 110(C).
    17. Gautam, Ruskin & Gustafson, Christopher R. & Brooks, Kathleen R., 2017. "Label Position and it Impacts on WTP for Products Containing GMO," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258105, Agricultural and Applied Economics Association.

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