Skip to content
Licensed Unlicensed Requires Authentication Published by De Gruyter January 4, 2014

Economic Benefits Coming from the Absence of Labels Proliferation

  • Stéphan Marette EMAIL logo


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.

JEL Classification: D82; C91


Becker, G. M., M. H.DeGroot, and J.Marschak. 1964. “Measuring Utility by a Single-Response Sequential Method.” Behavioural Science9(3):22632.10.1002/bs.3830090304Search in Google Scholar

Loureiro, M. L., J. J.McCluskey, and R. C.Mittelhammer. 2001. “Assessing Consumer Preferences for Organic, Eco-Labeled, and Regular Apples.” Journal of Agricultural and Resource Economics26(2):40416.Search in Google Scholar

Lusk, J., and S.Marette. 2012. “Can Labeling and Information Policies Harm Consumers?Journal of Agricultural and Food Industrial Organization10(2012):113.10.1515/1542-0485.1373Search in Google Scholar

Marette, S. 2010. “Consumer Confusion and Multiple Equilibria.” Economics Bulletin30(2):11208.Search in Google Scholar

Morris, S., and H. S.Shin. 2002. “Social Value of Public Information.” American Economic Review92:152134.10.1257/000282802762024610Search in Google Scholar

Rousu, M. C., W. E.Huffman, J. F.Shogren, and A.Tegene. 2007. “Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food.” Economic Inquiry45(3):40932.10.1111/j.1465-7295.2007.00017.xSearch in Google Scholar

Swinnen, J. F. M., P.Squicciarini, and T.Vandemoortele. 2011. “Policy Analysis and Communication.” European Review of Agricultural Economics38:40926.10.1093/erae/jbr020Search in Google Scholar

Wansink, B., S.Sonka, and C.Hasler. 2004. “Front-LabelHealth Claims: When Less Is More.” Food Policy29:65967.10.1016/j.foodpol.2004.10.004Search in Google Scholar

Published Online: 2014-1-4
Published in Print: 2014-1-1

©2014 by De Gruyter

Downloaded on 25.9.2023 from
Scroll to top button