Interaction between Food Attributes in Markets: The Case of Environmental Labeling

University of Massachusetts, Amherst Resource Economics Working Paper No. 2005-5

30 Pages Posted: 28 Apr 2005

See all articles by Gilles Grolleau

Gilles Grolleau

Montpellier SupAgro and Researcher at LAMETA

Julie A. Caswell

University of Massachusetts, Amherst

Date Written: April 2005

Abstract

Some consumers derive utility from using products produced with specific processes, such as environmentally friendly practices. Means of verifying these credence attributes, such as certification, are necessary for the market to function effectively. A substitute or complementary solution may exist when consumers perceive a relationship between a process attribute and other verifiable product attributes. We present a model where the level of search and experience attributes influences the likelihood of production of eco-friendly products. Our results suggest that the market success of eco-friendly food products requires a mix of environmental and other verifiable attributes that together signal credibility.

Keywords: Environmental labeling, food attributes, food marketing, quality perception

JEL Classification: L15, Q13, Q18

Suggested Citation

Grolleau, Gilles and Caswell, Julie A., Interaction between Food Attributes in Markets: The Case of Environmental Labeling (April 2005). University of Massachusetts, Amherst Resource Economics Working Paper No. 2005-5, Available at SSRN: https://ssrn.com/abstract=708483 or http://dx.doi.org/10.2139/ssrn.708483

Gilles Grolleau

Montpellier SupAgro and Researcher at LAMETA ( email )

France

Julie A. Caswell (Contact Author)

University of Massachusetts, Amherst ( email )

Stockbridge Hall
80 Campus Center Way
Amherst, MA 01003-9246
United States
413-545-5735 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
213
Abstract Views
1,408
rank
170,030
PlumX Metrics