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The Economics of Labeling: An Overview of Issues for Health and Environmental Disclosure

Published online by Cambridge University Press:  15 September 2016

Mario F. Teisl  and
Brian Roe
Mario F. Teisl
Affiliation:
Department of Resource Economics and Policy, University of Maine, Orono
Brian Roe
Affiliation:
Department of Agricultural, Environmental and Development Economics, Ohio State University, Columbus
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Abstract

During the last two decades, product labeling has become an increasingly used policy tool, particularly with respect to the provision of health and environmental information. Theory holds that the flow of information among market participants plays a critical role in the efficient operation of markets. This paper explores the role of product labeling policy in ameliorating two potential market deficiencies: asymmetric information and costly search behavior. Practical considerations for the design and implementation of labeling policy and of labeling research are explored.

Type
Invited Presentations
Information
Agricultural and Resource Economics Review , Volume 27 , Issue 2 , October 1998 , pp. 140 - 150
Copyright
Copyright © 1998 Northeastern Agricultural and Resource Economics Association 

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