Abstract
In a lab experiment, two milk bottles with different levels of omega-3 were offered to participants for eliciting willingness to pay. We find that a simple message on the difference regarding the omega-3 content between bottles significantly impacts the participants’ willingness to pay for these bottles. The exit questionnaire also shows that participants would prefer the exclusive use of the omega-3 label posted on the bottle with the highest content in omega-3. From an interpretation of questionnaires and elicited willingness to pay, simulations show that the exclusive use of one label signaling omega-3 would have a positive impact on both profits and consumers’ surpluses.
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