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Signaling Impacts of GMO Labeling on Fruit and Vegetable Demand

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  • Yeh, D. Adeline
  • Gomez, Miguel I.
  • Kaiser, Harry M.

Abstract

Food labels may have both informational and signaling influences on consumer demand. We conduct a choice experiment with over 1,300 subjects to examine the signaling effect of the food product labels on consumer demand for other competing products in the market. Specifically, we focus on the genetically modified (GM) text labeling for fresh produce (strawberries, apples, and potatoes) in the United States. Contrary to some previous studies, our results indicate that the absence-claim label (Not-GM) does not have a negative impact on the demand for related conventional products. Instead, we find that consumer demand for unlabeled products is significantly enhanced with the introduction of presence-claimed GM labels. Our results contribute to the ongoing discussion of the enactment of mandatory labeling for GM foods by the federal U.S. government. Our results suggest that, in the case of direct text disclosure labels, consumers may no longer differentiate between unlabeled products and Not-GM-labeled products after the mandatory GM labeling law is in effect.
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Suggested Citation

  • Yeh, D. Adeline & Gomez, Miguel I. & Kaiser, Harry M., 2019. "Signaling Impacts of GMO Labeling on Fruit and Vegetable Demand," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 290866, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea19:290866
    DOI: 10.22004/ag.econ.290866
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    1. Christopher Kanter & Kent D. Messer & Harry M. Kaiser, 2009. "Does Production Labeling Stigmatize Conventional Milk?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1097-1109.
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    2. Sunjin Ahn & Jayson L. Lusk, 2021. "Non‐Pecuniary Effects of Sugar‐Sweetened Beverage Policies," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 53-69, January.

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