A GAME THEORETIC APPROACH TO ORGANIC FOODS: AN ANALYSIS OF ASYMMETRIC INFORMATION AND POLICY

Jill McCluskey

Agricultural and Resource Economics Review, 2000, vol. 29, issue 01, 9

Abstract: Demand for healthy, safe and environmentally friendly food products has been increasing. In response, producers are marketing organic and other quality-differentiated foods, sometimes claiming to have followed sound environmental and animal welfare practices. These products frequently have unobservable quality attributes. If the profit-maximizing producer is able to deceive the consumer with a false claim, then he or she will enjoy a higher price with lower production costs (compared to the full disclosure outcomes). The analysis described in this paper shows that repeat-purchase relationships and third party monitoring are required for high-quality credence goods to be available. Policy implications of this analysis for national organic food standards are discussed.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (110)

Downloads: (external link)
https://ageconsearch.umn.edu/record/31334/files/29010001.pdf (application/pdf)

Related works:
Journal Article: A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy (2000)
Working Paper: A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:31334

DOI: 10.22004/ag.econ.31334

Access Statistics for this article

More articles in Agricultural and Resource Economics Review from Northeastern Agricultural and Resource Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().