IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00243062.html
   My bibliography  Save this paper

Fair Trade: In or Out the Market?

Author

Listed:
  • Sylvaine Poret

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Claire Chambolle

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper focuses on a sustainable perspective of Fair Trade concept. We propose a simple model to provide some theoretical arguments in the debate about the sale of Fair Trade labelled goods in the large-scale distribution. The main hypothesis is related to the observation that some consumers are willing to pay a premium for Fair Trade products. We show that Fair Trade products are more likely to be on retailer's shelves if the Fair Trade certifier's objective is to maximize quantities labelled rather than the price paid to producers. We also underline that the key variable in the retailer's choice to sell the Fair Trade product is not the percentage of consumers who are willing to pay a Fair Trade good, but how much the Fair Trade likers are willing to pay for it.

Suggested Citation

  • Sylvaine Poret & Claire Chambolle, 2007. "Fair Trade: In or Out the Market?," Working Papers hal-00243062, HAL.
    • Handle: RePEc:hal:wpaper:hal-00243062
    Note: View the original document on HAL open archive server: https://hal.science/hal-00243062
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00243062/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Soberman, David A. & Parker, Philip M., 2004. "Private labels: psychological versioning of typical consumer products," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 849-861, June.
    2. Giovanni Immordino, 2003. "Fairness, NGO Activism and the Welfare of Less Developed Countries," CSEF Working Papers 101, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 09 Dec 2007.
    3. Giovannucci, Daniele & Koekoek, Freek Jan, 2003. "The State of Sustainable Coffee: A Study of Twelve Major Markets," MPRA Paper 17172, University Library of Munich, Germany.
    4. Fabrizio Adriani & Leonardo Becchetti, 2004. "Fair Trade: A 'Third Generation' Welfare Mechanism to Make Globalisation Sustainable," CEIS Research Paper 62, Tor Vergata University, CEIS.
    5. Laura Raynolds, 2000. "Re-embedding global agriculture: The international organic and fair trade movements," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 17(3), pages 297-309, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working papers of CATT hal-02937865, HAL.
    2. Florence TOUYA, 2019. "Relevance of Potential Supply Structures in Frameworks involving Consumer's private Information: the Case of Fair Trade," Working Papers 2018-2019_12, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2019.
    3. Florence TOUYA, 2019. "Relationships and Nature of Contracts in the Distribution Structure for Responsible Trade," Working Papers 2018-2019_10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Oct 2019.
    4. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working Papers hal-02937902, HAL.
    5. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working Papers hal-02937865, HAL.
    6. Andreas Graichen, 2008. "Fairtrade Labelling in a Bertrand Competition Model with Monopsony Power," Working Papers 050, Bavarian Graduate Program in Economics (BGPE).
    7. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working papers of CATT hal-02937902, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Marie Codron & Lucie Siriex & Thomas Reardon, 2006. "Social and environmental attributes of food products in an emerging mass market: Challenges of signaling and consumer perception, with European illustrations," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 23(3), pages 283-297, October.
    2. Géraldine Froger & Valérie Boisvert & Philippe Méral & Jean-François Le Coq & Armelle Caron & Olivier Aznar, 2015. "Market-Based Instruments for Ecosystem Services between Discourse and Reality: An Economic and Narrative Analysis," Sustainability, MDPI, vol. 7(9), pages 1-17, August.
    3. Pierre Kohler, 2006. "The Economics of Fair Trade: For Whose Benefit? An Investigation into the Limits of Fair Trade as a Development Tool and the Risk of Clean-Washing," IHEID Working Papers 06-2007, Economics Section, The Graduate Institute of International Studies, revised Oct 2006.
    4. Coralie Calvet & Claude Napoleone & Jean-Michel Salles & Syndhia Mathé & Hélène Rey-Valette & Leslie Carnoye & Rita Lopes & Valérie Boisvert & Philippe Méral & Jean-François Le Coq & Armelle Caron & O, 2015. "Ecosystem Services and Institutional Dynamics," Post-Print hal-03023959, HAL.
    5. Laura Raynolds & Douglas Murray & Andrew Heller, 2007. "Regulating sustainability in the coffee sector: A comparative analysis of third-party environmental and social certification initiatives," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(2), pages 147-163, June.
    6. Alessandro Arrighetti, 2009. "Market Imperfections and Fair Trade," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    7. Takahashi, Ryo, 2021. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment in Japan to promote eco-friendly coffee," Ecological Economics, Elsevier, vol. 186(C).
    8. Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
    9. Sylvaine Poret, 2007. "Les défis du commerce équitable dans l'hémisphère Nord," Working Papers hal-00243061, HAL.
    10. repec:ags:ijag24:345263 is not listed on IDEAS
    11. Ximena Rueda & Andrea Paz & Theodora Gibbs‐Plessl & Ronald Leon & Byron Moyano & Eric F Lambin, 2018. "Smallholders at a Crossroad: Intensify or Fall behind? Exploring Alternative Livelihood Strategies in a Globalized World," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 215-229, February.
    12. Takahashi, Ryo & Todo, Yasuyuki & Funaki, Yukihiko, 2018. "How Can We Motivate Consumers to Purchase Certified Forest Coffee? Evidence From a Laboratory Randomized Experiment Using Eye-trackers," Ecological Economics, Elsevier, vol. 150(C), pages 107-121.
    13. Lindsay Naylor, 2014. "“Some are more fair than others”: fair trade certification, development, and North–South subjects," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 273-284, June.
    14. Griffith, Rachel & Smith, Kate & Krol, Michal, 2015. "Store Brands and the Role of Advertising," CEPR Discussion Papers 10877, C.E.P.R. Discussion Papers.
    15. Sarah Bowen & Tad Mutersbaugh, 2014. "Local or localized? Exploring the contributions of Franco-Mediterranean agrifood theory to alternative food research," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 201-213, June.
    16. Katherine Fuller & Carola Grebitus, 2023. "Consumers' preferences and willingness to pay for coffee sustainability labels," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1007-1025, October.
    17. Giang N. T. Nguyen & Tapan Sarker, 2018. "Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-17, December.
    18. Claire Chambolle & Clémence Christin & Guy Meunier, 2015. "Optimal Production Channel for Private Labels: Too Much or Too Little Innovation?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(2), pages 348-368, June.
    19. Ikuo Ishibashi & Noriaki Matsushima, 2009. "The Existence of Low-End Firms May Help High-End Firms," Marketing Science, INFORMS, vol. 28(1), pages 136-147, 01-02.
    20. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    21. Jess Bonnan-White & Andrea Hightower & Ameena Issa, 2013. "Of couscous and occupation: a case study of women’s motivations to join and participate in Palestinian fair trade cooperatives," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(3), pages 337-350, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00243062. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.