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Estimating potential beggar‐thy‐neighbor effects of state labeling programs

Clinton L. Neill, Rodney B. Holcomb and Jayson Lusk ()

Agribusiness, 2020, vol. 36, issue 1, 3-19

Abstract: In the past 40 years, federal and state policies have financially and philosophically supported the establishment of state‐branded food marketing programs in each state. The intention of the programs is to increase consumer demand for locally grown foods. However, the benefits of such programs are likely to be reduced when multiple states simultaneously market their own local foods. To investigate this issue, we conducted a survey of 6,900 consumers residing in an eight‐state contiguous region. We find that preferences are heterogeneous when neighboring state‐branded products are available, and some consumers will instead buy products from other states. The results suggest caution in estimating the policy impacts of state branding programs without considering how neighboring states react.

Date: 2020
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Handle: RePEc:wly:agribz:v:36:y:2020:i:1:p:3-19