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Article Dans Une Revue Journal of Agricultural and Food Industrial Organization Année : 2009

Labeling policies and market behavior: quality standard and voluntary label adoption

Résumé

This paper focus's on the third-party certifiers' strategy when choosing a required label quality, and the consequent market outcome. We consider two different objectives of the certifier: maximizing global demand for the labeled product (wide public policy), or maximizing global quality of the market (global quality policy). In a duopoly set up with firms bearing different costs with respect to quality provision, firms always opt for differentiation strategies: only one adopts the label. However, the labeling firm is not necessarily the most efficient one. In the case of a wide public policy, the efficient firm will produce labeled products only if costs of labeling are sufficiently low. In the case of a global quality policy, the low cost firm will always push the high-cost firm into the labeling program.
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Dates et versions

hal-01072338 , version 1 (30-05-2020)

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Lucie Bottega, Philippe Delacote, Lisette Ibanez. Labeling policies and market behavior: quality standard and voluntary label adoption. Journal of Agricultural and Food Industrial Organization, 2009, 7 (2), pp.1-6. ⟨10.2202/1542-0485.1273⟩. ⟨hal-01072338⟩
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