Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2004

Journal or Book Title

Journal of Agricultural & Food Industrial Organization

Volume

2

First Page or Article ID Number

8

Abstract

Genetically modified (GM) foods have been engulfed in considerable controversy, and the early optimism has been dampened. Information issues—labeling and asymmetric information—are central to the GM-food debate. Furthermore, it is important to understand the reaction in developed countries to GM-foods because they set the tone of the world market in grains, oilseeds, and animal products. New results are reported from a statistical analysis of the market characteristics that push consumers in a high-income country to resist GM foods, with an emphasis on negative information from environmental groups and third-party, verifiable information, which could neutralize private information distributed by interested parties. A unique sample of adult consumers participated in laboratory auctions of three food products with randomized labeling and information treatments. A key finding is that GM information supplied by environmental groups increases the probability that consumers are out of the market for GM-foods. Third-party verifiable information, however, dissipates most of the negative effect of the environmental group perspective. Selective adoption of GM crops seems likely to raise world welfare but Western Europe’s banning of GM imports and technology will largely affect them negatively.

Comments

This article is from Journal of Agricultural & Food Industrial Organization 2 (2004): 8.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Copyright Owner

The authors

Language

en

File Format

application/pdf

Share

COinS