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Eco-Labels as a Signal of Quality

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  • Kwong, Lester M.K.

Abstract

Using a canonical model of signaling, we show that if the cost of organic viticulture is strictly increasing in the quality dimension, then the use of eco-labels as a signal for quality cannot possibly occur as an equilibrium outcome. Conditions for the existence of such a signalling equilibrium as well as some general properties regarding its configuration are herein characterized. (JEL Classification: L15, L66, M3)

Suggested Citation

  • Kwong, Lester M.K., 2011. "Eco-Labels as a Signal of Quality," Journal of Wine Economics, Cambridge University Press, vol. 6(2), pages 179-192, October.
    • Handle: RePEc:cup:jwecon:v:6:y:2011:i:02:p:179-192_00
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    Cited by:

    1. Shizuka Nishikawa, 2015. "Regulating Cournot Oligopoly with Environmental Externalities," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(4), pages 449-462, December.

    More about this item

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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