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How Labeling of Safety and Process Attributes Affects Markets for Food

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  • Caswell, Julie A.

Abstract

Consumers are increasingly considering information on the safety and process (how foods are produced) attributes of food in making their buying decisions. Producers, processors, and retailers may choose voluntary labeling of these attributes, may be required to label by government regulations, or may use a combination of these approaches. The market effects depend on consumer perceptions of the attributes, the benefits and costs of labeling for companies, and the goals of government policy. These effects are illustrated through a discussion of labeling of foods that are produced with the use of biotechnology (genetically modified organisms) or that are organically grown.

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  • Caswell, Julie A., 1998. "How Labeling of Safety and Process Attributes Affects Markets for Food," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 151-158, October.
    • Handle: RePEc:cup:agrerw:v:27:y:1998:i:02:p:151-158_00
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    1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    2. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
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